Bankruptcy Law, Credit and Interest Rates in Brazil

Vol. 25 No. 1 (2005)

Jan-Mar / 2005
Published January 1, 2005
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Carvalho, Antonio Gledson de. 2005. “Bankruptcy Law, Credit and Interest Rates in Brazil”. Brazilian Journal of Political Economy 25 (1):131-53.

Bankruptcy Law, Credit and Interest Rates in Brazil

Antonio Gledson de Carvalho
Departamento de Contabilidade, Finanças e Controle da Escola de Administração de Empresas de São Paulo da Fundação Getúlio Vargas – EAESP/FGV, São Paulo-SP, Brasil.
Brazilian Journal of Political Economy, Vol. 25 No. 1 (2005), Jan-Mar / 2005, Pages 131-153


Bankruptcy law is an important economic institution because of its effects on credit and, consequently, on financial and economic development. This fact has led several countries to revise their law. This article presents an overview on the topic focusing in Brazil. Its main points are: credit in Brazil is not compatible with the country level of development; there is evidence that Brazil is among the countries where legal protection to creditors is worst; the international experience shows that changes in the bankruptcy law affects the market for credit; and the Brazilian law is extremely outdated.

JEL Classification: E51; G33; K42.

Keywords: Bankruptcy law credit interest rates