Brazil's default ratio up 2.8% in July

RIO DE JANEIRO, Aug. 12 (Xinhua) -- The default ratio in Brazil was up 2.8 percent in July compared to June and 6.9 percent year-on-year, credit consulting company Serasa Experian said on Wednesday.

Although the rate had increased, it was at a slower pace than in previous months. In the second quarter of this year, the default ratio increased 9.4 percent year-on-year. The ratio rose 9.9 percent in the first seven months of this year from the same period last year.

About 44 percent of the default cases were debts with banks. Debts with credit card and financing institutions amounted to 36.6 percent of defaults, up 4.4 percent from last year.

According to Serasa Experian, the deceleration in the default ratio was due to improvements in the Brazilian economy in the second quarter, which included a rise in economic activity, credit and consumer confidence levels.

The company believed Brazil was starting to recover from the global financial crisis. Although the default ratio was expected to fall further, it was still likely to be higher by the end of this year than last year.