The Basic Passive Rate continued to decline and for this week fell from 4.50% to 4.35%, while the Effective Dollar Rate also fell from 2.35% to 2.25%.
The Central Bank of Costa Rica published on the afternoon of Wednesday, March 18th that after registering considerable drops in the previous weeks, the Basic Passive Rate fell again, in this case by 0.15% and will remain at 4.35% until next Wednesday, March 18th.
In order to help cooperatives, cope with the emergency caused by the spread of covid-19, the National Institute for Cooperative Development agreed to reduce the interest rate on loans.
This decision was taken to support the cooperative sector, especially the agricultural sector, which has been suffering from a variety of effects. The authorities also hope to make a significant contribution to the country, in the context of the current epidemiological situation, reported the National Institute for Cooperative Development (INFOCOOP).
Local authorities decided to raise by 10% the minimum capital required for the opening of a bank or the operation of existing ones.
The Superintendence of Banks and Other Financial Institutions (Siboif) announced that the minimum capital required for banks that already operate or wish to enter was raised by $1.03 million, from $10.67 million to $11.70 million.
The Basic Passive Rate remained at 4.5%, while the Effective Dollar Rate reported a decrease, in this case from 2.38% to 2.35%.
The Central Bank of Costa Rica published on Wednesday afternoon, March 11, that after registering a decrease the previous week, the Basic Liable Rate reported no variations for the next few days and will remain at 4.5% until March 18.
During January 2020 the Monthly Index of Economic Activity reported a 5% year-on-year variation, a rise that was boosted by the construction and financial services sectors.
In terms of trend - cycle, the Monthly Indicator of Economic Activity (IMAE) shows a 5.3% annualized expansion, reflecting that the economic activity in the situation is growing at a consistent rate, reported the Central Bank of the Dominican Republic.
Treasury authorities announced that plans for this year are to negotiate with the Legislative Assembly for approval to issue debt in the international market, and if approved, the issuance would take place in 2021.
Last year the executive branch's plans were to issue $6 billion in Eurobonds, but the Legislative Assembly approved the issuance of only $1.5 billion, arguing that the amount proposed at the beginning was too high.
The Basic Passive Rate continued to decline and for this week fell from 4.80% to 4.50%, while the Effective Dollar Rate also fell from 2.45% to 2.38%.
The Central Bank of Costa Rica published on Wednesday afternoon, March 4 that after registering considerable drops in the previous weeks, the Basic Passive Rate fell again, in this case by 0.30% and will remain at 4.50% until next Wednesday, March 11.
For the Central Bank of Costa Rica, the constant reductions in the Monetary Policy Rate that have taken place since March 2019 have been gradually and incompletely transferred to the interest rates of the financial system.
In Guatemala, the business group of South American origin acquired 40% of the shares still owned by BAM Financial Corporation, and consolidated 100% of the assets of the Agromercantil Holding Group.
Directors of Bancolombia reported that the company will begin the process of authorizations to regulatory bodies and that in the coming days will provide details on the price of shares, according to the contractual rules between the parties who closed the negotiation.
Arguing that there were arbitrariness and that due process had not been complied with, former representatives of Financiera de Occidente S.A. decided to file a legal appeal following the suspension of the entity.
In Costa Rica, the Basic Passive Rate dropped from 4.95% to 4.80%, a drop that was influenced by the behavior of public bank rates.
The Central Bank of Costa Rica published on the afternoon of Wednesday, February 26 that after registering a considerable drop the previous week, the Basic Liable Rate fell again, in this case by 0.15% and will remain at 4.80% until next Wednesday, March 4.
As of November 2019 the credit portfolio of banks in the national system totaled $55.723 million, 2% more than reported in the same month of 2018, increase that is explained by loans to the livestock sector, mortgage and personal.
Domestic credit to the private sector reflects an increase of 2.5% over similar period last year. The sectors that drive domestic credit are associated with personal banking products, reported the Superintendency of Banks of Panama.
Arguing that the main economic indicators show a stable behavior, the Central Bank decided at the beginning of the year to maintain the level of the leading interest rate of the monetary policy at 2.75%.
From the Bank of Guatemala's statement:
February 20th, 2020. The Monetary Board, in its session celebrated on February 19, based on the integral analysis of the external and internal economic situation, after evaluating the Inflation Risks Balance, decided to keep the level of the leading interest rate of the monetary policy at 2.75%.
The Basic Passive Rate dropped from 5.65% to 4.95%, while the Effective Dollar Rate also dropped, from 2.41% to 2.35%.
The Central Bank of Costa Rica published on the afternoon of Wednesday, February 19 that after registering a slight fall the previous week, the Basic Passive Rate fell again, in this case by 0.70% and will remain at 4.95% until next Wednesday, December 26.
The Óptima financial group bought the shares of Financiera Solidaria S.A., a transaction that amounted to $50 million.
Directors of Óptima reported that Financiera Solidaria S.A. (Finsol) has been in the Honduran market for 21 years and that this acquisition is part of its strategy to regionalize the financial company in the micro and small business segments.