INSUBCONTINENT EXCLUSIVE:
Brazilian companies have it especially hard compared to others around the world.They deal with some of the highest interest rates globally
after getting little help during the pandemic
This puts pressure on companies with lots of debt.The Brazilian real has also lost value, making things harder for businesses that earn
money in real but have costs in dollars
Airlines, retailers, healthcare providers, and farming companies are feeling the squeeze.Brazilian Firms Struggle as Interest Rates Soar and
(Photo Internet reproduction)These sectors are at risk because of their reliance on borrowing or exposure to currency fluctuations
defaulting on their debts has reached 6.27%, the highest level since 2016
This shows how serious the situation has become for many businesses in the country.Some companies are selling off parts of their business to
Healthcare companies are making big changes
Others are talking to lenders about changing the terms of their loans.The farming industry is also struggling
Two companies have recently asked for protection from their creditors
This sector faces both high interest rates and falling commodity prices, making it hard to stay profitable.These challenges are likely to
continue in the near future
Companies are also holding off on new investments
Businesses are waiting for better conditions before expanding their operations.The tough economic situation is changing how Brazilian
It remains to be seen how long these challenges will persist.
