Analysis of the basic interest rate on pre-fixed working capital for legal entities

Abstract

The present work seeks to analyze the impact of the basic interest rate practiced by the Central Bank of Brazil (Bacen) through COPOM and its impact on the interest rates practiced by some Brazilian financial institutions, especially in working capital loans to Legal Entities (PJ). The Brazilian basic interest rate, known as Selic, is one of the main variables that influence the cost of credit for these institutions. Any fluctuation in the Selic rate can trigger changes in several market metrics, such as foreign trade and inflation. In view of the various developments of the impact that the Selic may cause, it was decided to address its effect on credit lines for companies, especially in the Working Capital modality with a term of up to 365 days – Pre-Fixed. To this end, a survey was carried out of companies with more than 2% participation in the Ibovespa Index, and public institutions with mixed capital had their interest rates monitored by the Central Bank.

DOI:https://doi.org/10.56238/sevened2024.018-052