São Paulo, March 26, 2004 (Agência Brasil) - Over 300 firms throughout the country began bankruptcy proceedings in February, a 52.8% increase in the number of creditor requests granted by Brazilian courts in comparison with the same period last year, according to a study released today by Serasa, a firm specialized in economic and financial analyses. The total number of bankruptcies that were decreed was 324, as against 251 in February, 2003.

According to Serasa's technical analysis, these data evidence the difficulties faced by companies, especially small and medium-sized ones, "in administering resources in a setting of reduced sales volume, high interest rates, and tax hikes."

Translator: David Silberstein