Economy

Loans grew 15.4% in Brazil last year; the biggest increase since 2012

According to the country's federation of banks, growth was driven by companies seeking support to face the COVID-19 crisis

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  • 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.

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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

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