Brazil short-term corporate credit surges 172% as firms shun long-term debt

Brazilian companies are increasingly relying on short-term working capital loans (up to 365 days) amid high interest rates, with a 171.8% surge in H1 2026 versus H1 2025, while longer-term credit fell 9.4%. This marks the second-largest increase in the historical series since 2011, after 2020, signaling acute liquidity stress and a preference for bridging financing over long-term commitments. The shift reflects tight credit conditions and may raise refinancing risks for corporates if rates stay high.