Brazil sees loan refinancing deals gaining steam this year
BRASILIA/SAO PAULO, April 7 (Reuters) - Banks in Brazil will step up loan refinancing deals with corporate borrowers this year, the central bank said in a Thursday report, as the impact of the harshest recession in over a century and escalating political turmoil hamper the ability of factories, shops and farmers to repay their debts.
According to the central bank's semi-annual financial stability report, lenders are having a harder time predicting default trends amid an uncertain economic outlook for Latin America's largest economy. Defaults may keep climbing this year, offsetting the benefits of higher borrowing costs, and may force banks to implement even more prudent loan-loss provisioning policies, the report said. (Reporting by Marcela Ayres and Guillermo Parra-Bernal; Editing by Chizu Nomiyama)
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