OECD links growth to judicial efficiency in Brazil

A study by the OECD suggests that Brazil needs to reduce judicial inefficiency and uncertainty in order to boost economic activity and overcome the current deep recession caused by Covid-19. Bankruptcy proceeding are also considered less efficient and more costly than in OECD members. A typical insolvency case takes four years in Brazil compared to 1.8 year in developed countries. Since the assets of companies in bad shape tend to lose value quickly, the debt recovery rate in Brazil with bankruptcies is only 18 cents per dollar, compared to 68 cents in rich countries.

Source: Valor International