Brazil hits record corporate defaults as consumer credit defaults surge

In April, Brazil recorded a historic peak in corporate defaults, with Serasa Experian reporting nine million CNPJs in negative status and a combined debt of R$ 220.9 billion. The service sector accounts for 55.6% of these defaults, followed by commerce (32.4%) and industry (8.1%). The increase follows the launch of the federal Novo Desenrola Brazil program, which had processed 85,000 operations totalling R$ 11 billion by early May.

At the same time, Brazil faces a wave of consumer credit problems. Data from the National Confederation of Business Leaders and SPC Brazil indicate that more than 74 million Brazilians have restrictions on their CPF, representing nearly half of the adult population. Financial fraudsters are exploiting this vulnerability with false‑loan schemes that demand advance fees before credit is released. The Brazilian Federation of Banks warns that legitimate institutions never require such pre‑payments, urging consumers to verify company registration, avoid upfront charges, and read contract terms fully.