Small companies expanded access to credit during pandemic

Bank credit available for micro, small and medium-size companies reached an annual growth rate of 28% in September, driven by government initiatives to guarantee financing for the segment during the pandemic. With expansion rates that have not been seen for almost a decade, these companies have become the most dynamic borrowers in the last two months. “Data indicate that several programs launched by the government were successful, although we didn’t do research with the companies to confirm that they had their needs met,” said the deputy head of the Central Bank’s Statistics Department, Renato Baldine. Large corporations, which at the beginning of pandemic withdrew lines of credit from financial institutions, recorded a 12.6% increase in operations in the period.

Source: Valor International