Friday 24 September 2021

Banks Required To Be Stricter With Dollar Loans

Paying the bills


Today’s Vehicle Restriction September 24: Plates ending in “9 & 0” CANNOT circulate

QCOSTARICA - For today, Friday, September 24, vehicles with...

Why the billions in English are not like the billions in Spanish

What amount would you prefer to have saved in...

Health confirms 15 cases of malaria on the border with Nicaragua

QCOSTARICA - An outbreak of 15 people positive for...

Conditions worsen for Haitian migrants on US-Mexico border

Q24N - Conditions are deteriorating in a camp on...

Costa Rica, Panama and Dominican Republic seek a solution for Haiti

QCOSTARICA - Costa Rica President Carlos Alvarado, Luis Abinader...
Paying the bills


The Superintendencia General de Entidades Financieras (Sugef) is requiring banks to be more strict with dollar loans, as part of the new regulations it is has been in discussing with the banks, since last week.

Dollar ExchangeFinancial institutions, including cooperatives and mutuals have until May 30 to submit comments to the proposed rules. Subsequently, the Sugef will evaluate the comments and may incorporate them into the reforms to be approved by the Consejo Nacional de Supervisión del Sistema Financiero (Conassif).

The goal is to have the changes in effect between July and August. The proposed measures means a more rigorous assessment that banks make of their customers as wells as its inernal operation on issues such as liquidity.

- Advertisement -

The primary objective is to extend dollars creidt only to those with the ability to pay despite exchange rate fluctuations.

The proposed changes means banks will have to take a closer at its debtors, the guarantees and credit history. Currently, the “stress tests” are reserved for loans excessing ¢65 million colones. Although there are banks that already perfom strict evaluations of all its customers.

In addition, finacial institutions have to increase their reserves for any contingency by 0.5% of its total loan portfolio.

The changes will be gradual, financial institutions will have from three to 36 months.

Gilberto Serrano, president of the Asociación Bancaria Costarricense (ABC) – Costa Rican Banking Association – says the measures will make it more difficult for baks to make loans. “The provisions will disquality people to have access to cheap dollars, forced to borrow in colones, which is more expensive”, said Serrano.

- Advertisement -
Paying the bills
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Cuba Plane Crash: Company ‘Had Safety Complaints’

Solidarity and investigations after the accident. Cuban authorities are investigating the...

The Volcanos Of Central America (By Country)

Among the things most loved by travelers to Central America is...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.