Insolvencies could skyrocket 47% in Brazil in 2021, says Allianz Group

The projections come from Euler Hermes, credit insurer of the Allianz Group. Companies face higher costs, lower profits, and political turmoil.

RIO DE JANEIRO, BRAZIL - Company insolvency could skyrocket 47% in Brazil this year, due to the withdrawal of government support measures amid the devastating effects of the health crisis on several sectors.

Insolvency in Brazilian export destinations may also increase by 17% this year. The projections come from Euler Hermes, credit insurer of the Allianz Group.

Last year, despite the pandemic, insolvencies fell by 15% in the country due to government support and court closures, thus the figure may not accurately reflect companies' financial situation.

Between 2016 and 2019, the number of insolvencies in Brazil averaged 2,800. After the . . .

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