New Civil Code could cause R$ 350 billion loss to the economy
Studies project billions in losses with the Civil Code reform in the Senate. Understand the risks for interest rates, technology, and investments in Brazil.
TL;DR
- The Senate plans to vote on a new Civil Code this year, potentially causing economic losses up to R$ 353.6 billion.
- Changes could weaken bank guarantees, leading to higher interest rates and increased costs for loans and financing.
- Legal vagueness in the new code may encourage excessive lawsuits and increase business adaptation and defense costs.
- New bureaucratic hurdles for foreign companies could deter up to 7.5% of foreign productive investments.
- The technology sector might see an impact of nearly R$ 26 billion due to stricter digital law obligations and increased platform liability.