* The Brazilian economy appears strong due to the Ibovespa soaring, but many companies are struggling to stay open due to high borrowing costs and scarce credit.
* A historically high number of companies are behind on their debt payments, with over eight million companies delinquent, and some experts say the reckoning was inevitable after the pandemic borrowing binge.
* The government is rolling out measures to shield households from the effects, but experts warn that the corporate distress could ripple through the broader economy and are concerned it’s too early to claim the worst point has been seen
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Archive Link: [https://archive.ph/LfBRv#selection-1177.0-1177.61](https://archive.ph/LfBRv#selection-1177.0-1177.61)
Summary:
* The Brazilian economy appears strong due to the Ibovespa soaring, but many companies are struggling to stay open due to high borrowing costs and scarce credit.
* A historically high number of companies are behind on their debt payments, with over eight million companies delinquent, and some experts say the reckoning was inevitable after the pandemic borrowing binge.
* The government is rolling out measures to shield households from the effects, but experts warn that the corporate distress could ripple through the broader economy and are concerned it’s too early to claim the worst point has been seen