Impact of pandemic on banks drops 50% in new stress test

The impact of the pandemic on banks, in a severe scenario of defaults by companies and vulnerable workers, fell 50% in the new stress test released by the Central Bank (BC). According to the Financial Stability Report, the Central Bank would have to contribute R$35 billion ($6.4 bn) in the simulation that considers a severe shock of covid-19 on the national financial system, which is half the previous test in May.

Source: Agencia Brasil

BTG lends $1.6 mm to small entrepreneurs, interest is reverted to social projects

BTG Pactual and announced that it will revert to the third sector, all the amount arising from the interest paid by small entrepreneurs who received the credit line in order to minimize the effects of the crisis caused by the coronavirus pandemic. In all, R$ 9 million ($1.6 mm) in credit was granted to micro-entrepreneurs, at a rate of 6% per year.

Source: Valor Investe