Tuesday 28 June 2022

Central Bank lowers the minimum legal reserve to stimulate economy

The percentage that banks should have on the deposit in the Central Bank was lowered from 15% to 12 %, allowing more capital for loans

Paying the bills

Latest

Pandemic generated the loss of 25 million jobs in Latin America

Q24N (EFE) The covid-19 pandemic generated the loss of...

What you should know about the visa to enter Europe from 2023

Q TRAVEL - Citizens of at least 60 countries...

Costa Rica presents its national tourism plan

QCOSTARICA - With three major objectives for the growth...

Most institutions in Costa Rica do not have cybersecurity personnel

QCOSTARICA - Most public institutions in Costa Rica do...

How to throw the perfect party for your friends: tips from Royal Craft Wood

Whether you're celebrating a birthday, anniversary, or just getting...

Luis Guillermo Solís: “Nicaragua should have been expelled from SICA”

Q REPORTS (Confidencial) Eight former Costa Rican presidents –...

A million people attended the Diversity March In San Jose

QCOSTARICA - Organizers of the 'Pride Costa Rica' calculate...

Dollar Exchange

¢685.75 Buy

¢693.59 small> Sell

28 June 2022 - At The Banks - BCCR

Paying the bills

Share

The Banco Central de Costa Rica (BCCR) – Central Bank – announced on Monday a reduction in the legal minimum reserve for banks in order to stimulate the loans in colones in the country.

Banco Central de Costa Rica (BCCR) or Central Bank

The decision will reduce from 15% to 12% the percentage that banks should save on deposit with the Central Bank, this will mean more money will be available for the granting of loans and the possibility of an improvement in interest rates.

The measure will be applied as of June 16 and will be applied only for deposits in colones (national currency).

- Advertisement -

“The measure adopted could stimulate credit conditions, given the situation in which the pace of economic activity has slowed, the level of production is below its potential, the unemployment rate is high and credit to the private sector has slowed down markedly,” explained Rodrigo Cubero, president of the Central Bank.

The Central Bank estimates that the decision would release some ₡381 billion colones that could be used in loans.

In the case of dollar deposits, the reserve will remain at 15%. As explained by Cubero, this is to help discourage loans in dollars.

“Without a doubt, the measures taken by the Central Bank will have a positive effect: more available resources and lower interest rates; however, the most important thing is the recovery of people’s confidence that the economy will improve and signals such as those sent by the Central reinforce this process,” said María Isabel Cortés, executive director of the Costa Rican Banking Association.

This is the first time the minimum legal reserve was reduced since 2002.

- Advertisement -
Paying the bills
Ricohttp://www.theqmedia.com
"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

Selling price of the dollar exceeds ¢700

QCOSTARICA - The millions of dollars invested (spent) by the Central...

Exchange rate reaches a new high of ¢694.43 in the wholesale market

QCOSTARICA - Despite an injection of US$32.1 million from the Banco...

Subscribe to our stories

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