Monday 14 June 2021

Costa Rica’s Central Bank Objects To Caps On Credit Card Interest Rates

Costa Rica’s Central Bank (BCCR) is objecting to the government’s bill to establish a statutory cap on loan and credit card interest rates.

For the issuer (loan or credit card), the initiative is a step backward in efforts to increase banking penetration, argues the Central Bank. “Policies to control prices and restrict market competition leads to financial repression”, argues the Cental Bank board in its report earlier this month.

Last month (August), the government submitted a bill to the Legislative Assembly, called the “Proyecto de Ley de Defensa al Consumidor ante la Usura en Tarjetas de Crédito”, that would qualify as “usury” loans that exceed twice the average lending rate of the last three months of the Sistema Financiero Nacional (National Financial System), as calculated by the Central Bank.

- Advertisement -

Currently, the average lending rate is 15.88%. If the bill were in law today, the cap would be 31.76%.

The rate cap would be regulated by the Ministerio de Economía, Industria y Comercio (MEIC) – Ministry of Economy , Industry and Commerce.

Mayi Antillón, Minister of the MEIC

MEIC head, Mayi Antillón, said the bill is based on experiences in countries like Chile and Colombia.

- Advertisement -

“We knew the bill would be questioned, but it is a good practice to have a healthy financial system”, says Antillón.

The minister added she does not understand the basis of the Central Bank objections, especially when credit card interest rates are over 50% and some store (retail) credit are over 70%.

In addition to the government’s bill, there are eight other bills before the Legislature that promotes placing limits on interest rates. However, none have reached final reading to pass into law.

Source: La Nacion

- Advertisement -

We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

"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

[BLOG] Costa Rican Electric Company – General Maintenance Procedures

During my fifteen plus years of living in Costa Rica, I...

Heliport, Money and Weapons in Costa Rica

Following reports by residents of Las Asturias de Pococí about flyovers...


Europe opens the doors to tourism, these are the requirements

Q TRAVEL - Europe opened the doors to tourism. While worldwide vaccination against covid-19 advances above the levels of each country, the restrictions are...

Will President Alvarado be vaccinated against Covid-19 soon?

QCOSTARICA - Costa Rican President Carlos Alvarado is just another citizen when it comes to covid-19 vaccination, given his young age and good health,...

Plate rupture has potential for stronger quakes

QCOSTARICA - The 5.7-magnitude tremor, felt at 5:27 pmon Thursday, occurred in a maritime zone with the potential for stronger earthquakes, explained Ivonne Arroyo,...

Your cell phone can now notify you if you had contact with a positive case of covid-19

QCOSTARICA - Fifteen months after the national emergency against covid-19 was declared, Costa Ricans will have a digital platform where you can be notified...

The US sanctions Nicaraguan Daniel Ortega’s daughter and close associates

TODAY NICARAGUA – The United States imposed economic sanctions on four Nicaraguan officials close to President Daniel Ortega on Wednesday, June 9, 2021, including...

Costa Rica will have a system to reduce marine pollution

QCOSTARICA - Costa Rica will have a system called "Interceptor" that will eliminate floating and suspended waste from the upper layer of its waters,...

5.7 Quake jolts Costa Rica

2021-06-10 17:27:0.5, Magnitude: 5.76, Depth 10.0 km, Epicenter: 95.5 km Southwest Malpais de Puntarenas. The jolt was felt also in the Central Valley. No reports...

Today’s Vehicle Restriction: June 10, “ODDS”

Today, Thursday, June 10, only ODDS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

Daniel Ortega undertook a hunt for presidential candidates and opponents

TODAY NICARAGUA – In an unprecedented persecution, the Daniel Ortega regime detained four presidential candidates in one week, a move that is part of...


Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

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.