Reduction of reserves does not help Honduran micro businesses
The reduction of the legal reserves to zero percent that was adopted by the Central Bank of Honduras does not guarantee resources for small businesses.
Monday, November 24, 2008
When the Central Bank lowers the interest rates so that more resources are available in the market, this money does not reach the small producer, but goes to banks which do not lend to small producers because they have no guarantees, bank accounts or profit and loss statements and are therefore excluded from these benefits, the president of the Association of National Industries (ANDI), Adolfo Facusse, lamented.
Starting on December 6, the legal reserves in local currency will be reduced to 0% and will be lowered by five points for deposits in foreign currency.
The Central Bank announced that the daily legal reserve requirement will now be 12%, while it now stands at 16.25% weekly.
According to Banks, the change in the calculation of the reserve will increase the costs of the financial intermediaries and will reduce the supply of credit.
The Central Bank announced that it will temporarily suspend all liquid operation in dollars in the banking system.
- Daily Update
- Government Purchases
- Classified Ads
- Indexes & Statistics
- Press Releases
- Events Calendar