Monday 20 September 2021

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

Today’s Vehicle Restriction September 20: Plates ending in “1 & 2” CANNOT circulate

QCOSTARICA - For today, Monday, September 20, despite being...

Athleta women’s brand opened its first store outside North America in Costa Rica

QCOSTARICA - Gap Inc.'s Athleta brand announced the opening...

Carlos Alvarado: Vaccine retention ‘delays global solution and increases risk of new virus variables’

QCOSTARICA - Costa Rica President Carlos Alvarado showed his...

Top 8 Ways To Make Money in 2021

There are many legal ways to make money in...

Otto Guevara compares Daniel Salas with a dictator for sanitary measures

QCOSTARICA - The vehicle restriction of odds and evens...

Today’s Vehicle Restriction September 19: “EVEN” ending plates CANNOT circulate

QCOSTARICA - For today, September 19, vehicles with EVEN...

What are we celebrating?

QCOSTARICA - From the gallows humor department is the...
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.

- Advertisement -

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

“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 -

- 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

Costa Ricans lose hope of a low dollar

QCOSTARICA - In December, Costa Ricans expected the dollar exchange rate...

TSE rules out political party donations in cryptocurrencies

QCOSTARICA - The Tribunal Supremo de Elecciones (TSE) - Supreme Elections...

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.