Bankruptcy filings in Brazil fell 26.0% in June compared to the same month in the previous year, according to data from credit research firm Boa Vista SCPC.

In the first six months of 2018, bankruptcy filings declined 18.3% compared to the same period of 2017. Meanwhile, the indicator fell 21.3% year over year in the 12-month period through June.

Meanwhile, applications for judicial recovery decreased 17.8% yearly in June. Judicial recoveries are part of Brazil's bankruptcy law where debtors must present creditors with a recovery plan to pay back debt.

The results reflect a continued downward trend in bankruptcy filings, Boa Vista said. "The downward movement is linked to an improvement in economic conditions, which allowed companies to present stronger signals in the solvency indicators, a fact that should continue if the recovery scenario gains a greater rhythm for the main productive sectors of the economy," the credit research company noted.