Costa Rica: Rise in Long-Term Interest Rates

The Ministry of Finance and the Central Bank have raised interest rates for periods of 3-5 years in order to discourage short-term investments.

Wednesday, March 5, 2014

Uncertainty about the future exchange rate and the fiscal situation is leading investors towards short term investments, as they wait for greater clarity before committing resources on longer term investments.

In order to encourage long term investment, the Ministry of Finance and the Central Bank have raised the rates paid on the main investment 3-5 year instruments.

"The rate for deposits for three years to five years started 2014 at 6.30% and then changed to its currently 6.50%.

The rate for five year deposits started 2014 at 6.85%, after adjustments, it currently stands at 7.15%. "

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