In a country that can’t stop having less than 70 million people with their names on the books of SPC Brasil and Serasa, the volume negotiated in the NPL (Non Performing Loans) market, i.e. the sale of defaulted portfolios by ceding companies, is expected to reach R$60 billion by 2024.
And depending on the performance of the Desenrola Brasil programme (the non-payment of the instalments of the negotiated agreements), this figure could rise even further, with more defaulted portfolios possibly being put up for sale at the end of this year.
The sale of defaulted portfolios by ceding companies ended the first three months of the year with R$18 billion in credit made available.
According to a survey carried out by Recovery, an Itaú Group company that is a leader in credit recovery in Brazil, the figures for 2024 represent growth over the first quarter of 2022, when the balance available to the market was R$14.5 billion, an increase of 28%.
Recovery manages more than R$150 billion in defaulted loans and currently has more than 35 million clients with active debts. In other words, just over half the number of people registered with Serasa.
Also according to Serasa, of the total debts of delinquent consumers negatived in January this year, 59.7% (or 6 out of 10) were regularised or renegotiated within 60 days of the reference month.
The data comes from Serasa Experian’s Credit Recovery Indicator and also shows that accounts worth more than R$10,000 were the most successful, with 70.8 per cent of payments.
The number of defaulters in the country increased further in April 2024, compared to April 2023, and reached 68.76 million Brazilians.
The indicator carried out by the National Confederation of Shopkeepers (CNDL) and the Credit Protection Service (SPC Brasil) shows that four out of ten adult Brazilians (41.82 per cent) were in debt in April 2024.
And this greater indebtedness is also evident in micro-enterprises and MEIs. For example, the strong growth in productive microcredit combined with the increase in the number of informal entrepreneurs and the lack of financial knowledge can create a problem for those who wish to have their own business: debt.
In the last three years, up to December 2023, the number of loans released rose by 45% and, from December 2019 to the end of last year, the average value of the loans requested registered a real gain of 16.79%.
Original Story: JC Negócios – UOL | Author: Fernando Castilho
Edition and translation: Prime Yield