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.



More on this topic

Nicaragua: Legal Reserve Falls to 13%

August 2019

The Central Bank announced that from August 12 it will reduce from 15% to 13% the legal reserve week rate in national currency.

From the Central Bank of Nicaragua statement:

Managua, August 07, 2019. The Central Bank of Nicaragua (BCN) reports that liquidity conditions are observed that favor the support of banking and monetary operations, which represents a change with respect to previous behavior.

Banking Legal Reserve Requirements Reduced in Nicaragua

February 2011

The Central Bank announced that the daily legal reserve requirement will now be 12%, while it now stands at 16.25% weekly.

According to Antenor Rosales, president of the Bank, financial institutions must maintain a minimum reserve of 15% biweekly and a daily minimum reserve of 12%.

Costa Rica: Changes in the Banking Reserves Will Restrict Credit

June 2009

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 of Costa Rica modified the methodology used to calculate reserves, implicating that, beginning next July 1st, Banks must have deposited in the Central Bank, at the end of each day, deposits of no less than 97.5% of the minimum legal reserves for the previous month. At the moment this calculation is done based on deposits from 5 days beforehand and it is at 90%.

Honduran Central Bank reduces reserves

November 2008

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 measure, announced by the president of the Central Bank, Edwin Araque, seeks to increase liquidity in the financial system by some $251 million (4.8 billion lempiras) which the banks will have available to offer in credit.

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