• The corporate loan portfolio grew 21.7% in 2020, while credit to individuals increased 10.8%;
• Febraban’s survey covered 68% of the country’s credit portfolio.

The volume of loans granted in Brazil in 2020 increased 15.4% in 2020 – the highest growth registered since 2012, showed a survey by the Brazilian Federation of Banks (Febraban), released on Thursday. The growth was driven mainly by loans to companies seeking support to face the COVID-19 crisis.

The corporate loan portfolio grew 21.7% in 2020, while credit to individuals increased 10.8%, according to the Febraban survey, which covered 68% of the country’s credit portfolio.

READ ALSO: Fitch: COVID-19 is a major risk factor for the downgrade of Latin American economies

The growth was mainly driven by credit lines launched by the government in response to the pandemic, Febraban said, especially for companies. New disbursements to companies from government-guaranteed lines doubled compared to 2019.

READ ALSO: Pressured by food prices, inflation ends 2020 at the highest level in 4 years in Brazil

In December, the growth of the total credit portfolio was 1.5%, the eighth consecutive month of growth, with individuals and companies growing at the same pace.

Translated by LABS