As Samantha Pearson writes in the Financial Times:
“Sick of paying high rates on your overdraft? Well just be grateful you don’t live in Brazil. The overdraft interest rate rose to 188 per cent a year in July – the highest since 1999. But what is more extraordinary, perhaps, is that Brazilians are willing to pay that much.
However, as economists such as Tony Volpon of Nomura Securities argue, one day that overdraft will run out, there will be no room in the monthly salary for more installments, and the spending spree will have to stop. Brazil’s economic slowdown may end up being even more abrupt.”
Full article here.