Costa Rica: Efforts to Lower Interest Rates

Managers of large Costa Rican public institutions are coordinating actions with government officials and state banks.

Tuesday, January 15, 2013

According to an article in Elfinancierocr.com, the meeting held on Monday 14 January is part of a consultation strategy that President Chinchilla is conducting in order to find the best way to control speculative capital inflows.

Alfredo Volio, chairman of the board of Banco Nacional, said: "The idea is to seek a reduction in interest rates, integrating the entire public sector for us to coordinate efforts."

The main feature of this meeting was the focus of discussion on the issue of interest rates, ignoring the exchange rate which is what had caught the attention of the government and traders in recent days.



More on this topic

Costa Rica: Bancrédito will No Longer Be a Commercial Bank

May 2017

The state bank will stop performing financial intermediation activities and, despite proof of its inefficiency, will be converted into a promotion and development bank.

From a statement issued by the President of Costa Rica:

The Governing Council, meeting at a shareholders meeting at Banco Crédito Agrícola de Cartago (Bancrédito), decided to accelerate the transformation of that entity into a promotion and development bank, by executing a plan that would allow the entity to gradually cease to perform financial intermediation activities before December 31, 2017.

Bankers Who Don't Understand their Business?

October 2012

The presidents of Costa Rican state banks said they "do not know why they are paying higher fees" than those paid by private banks.

EDITORIAL

The phenomenon of the nerve with which too many Latin American officials are flaunting their irresponsibility is increasing.

Television pictures showed a formal meeting chaired by the Chief Executive of Costa Rica, President Chinchilla, accompanied by her Vice-Minister of Finance, Central Bank President and other members of the economic team, and presidents and directors of the three main public banks in the country, the Banco Nacional, Banco de Costa Rica and Banco Popular.

State Banking Responsible for High Interest Rates

October 2012

The President of Costa Rica Laura Chinchilla criticized state-owned commercial banks for being directly responsible for the high interest rates plaguing the economy.

Nacion.com reports that "President Laura Chinchilla said yesterday that Costa Rican public banks "are over stepping their hand" with interest rates in colones which are hitting Costa Rican’s wallets."

Costa Rica: Strong Growth in Dollar Loans

September 2012

State banks are leading this growth, although private banks still retain 61% of the total loan portfolio in the U.S. currency.

An article in Nacion.com reports that "The growth in dollar loans from public banks is striking because it is a market that traditionally is dominated more by private financial institutions."

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