Reported 8 months ago
Brazilian companies are preparing for the impact of sustained double-digit interest rates, with the Central Bank of Brazil expected to hold the policy rate at 10.5% amid concerns over inflation and fiscal deficit control. This new reality poses challenges for companies with floating-rate debt taken at historically low rates during the pandemic. As global interest rates rise, Brazilian firms are facing higher borrowing costs and potential financial stress, leading to an increase in bankruptcy filings and debt restructuring efforts across various sectors.
Source: YAHOO