Brazil credit bubble fear as defaults rise

Consumer defaults in Brazil are expected to increase by a third by the end of this year, according to a leading credit rating agency, fuelling concerns over a boom in lending that some economists fear could turn into a credit bubble.

The level of loans overdue by 90 days has risen rapidly in recent months to 6.1 per cent and is expected to reach 8 per cent by the end of December, said Ricardo Loureiro, president of Experian Latin America, the credit rating agency.

http://www.ft.com/intl/cms/s/0/c0b3beb8-9a9c-11e0-bab2-00144feab49a.html#axzz1PliDn5oD