The Central Bank of Costa Rica informed that on November 12th, it made auction Monetary Stabilization Bonds in Colones, for an amount equivalent to $8 million, at a gross interest rate of 9.51%.
From the statement of the Central Bank of Costa Rica:
The Central Bank of Costa Rica announces to the national market that it will hold an auction of Monetary Stabilization Bonds next Monday, November 12th, 2018, and that in this event it will make available to the public the following standardized series, the features of which are detailed below:
Because of the adjustments made by the Central Bank to interest rates in recent days, financial institutions in Costa Rica will be forced to raise interest rates on savings in local currency.
Arguing that forecasts suggest that inflation in 2019 could be above the upper limit of the target range, on November 1st the Central Bank of Costa Rica (BCCR) decided to raise the monetary policy rate from 5% to 5.25%.
The Basic Passive Rate decreased from 5.80% to 5.65%, while the Effective Rate in Dollars also decreased, from 2.46% to 2.34%.
The Central Bank of Costa Rica published on Wednesday afternoon November 7th that after not registering a change the previous week, the Basic Passive Rate fell 0.15%, and will be kept at 5.65% until next November 14th. [GRAFICA caption="Click to interact with graphic"]
From July 2017 to September 2018, the percentage of loans in dollars with payment arrears over 90 days or in legal collection increased from 1.57% to 2.95%.
The default on dollar loans is still under 3%, which is still considered normal. However, according to the trend reported in recent months in the records of the General Superintendence of Financial Entities (Sugef), the indicator is likely to exceed the 3% barrier.
The Effective Rate in Dollars increased from 2.33% to 2.46%, while the Passive Basic Rate remained at 5.80% for the second consecutive week.
On Wednesday afternoon, October 31st, the Central Bank of Costa Rica published that after the 0.05% increase of two weeks ago, the Basic Passive Rate did not change and will remain at 5.80% until next Wednesday, November 7th. [GRAFICA caption="Click to interact with the graph"]
The Basic Passive Rate increased from 5.75% to 5.80%, while the Effective Interest Rate in Dollars increased from 2.21% to 2.33%.
The Central Bank of Costa Rica announced today that after recording a decline last week, the Basic Passive Rate increased 0.05%, and the level at which it will remain until next Wednesday, October 31 is 5.80%. [GRAFICA caption="Click to interact with graphic"]
The Passive Basic Rate decreased from 5.80% to 5.75%, while the Effective Rate in Dollars also decreased, from 2.43% to 2.21%.
On Wednesday afternoon, October 18th, the Central Bank of Costa Rica published that after not recording a movement in the previous week, the Basic Passive Rate decreased by 0.05%, and will remain at 5.75% until next Wednesday, October 25th. [GRAFICA caption="Click to interact with the graph"]
In Costa Rica a law proposal pretends to reduce by 50% the bank fees on loans for businesses and SMEs, as well as credits for social housing and lower class.
The law project, which was presented to the Congress by the representative, Yorleny Leon, aims to reduce fees in the formalization of bank loans, which currently range between 8% and 10% of total credit.
Mortgage and personal loans continue to determine a significant part of the 5% increase in domestic credit to the private sector, recorded between July 2017 and the same month in 2018.
More recent data from the Superintendence of Banks, up to the seventh month of the year the credit portfolio of the private sector reached $52,607 million, which is equivalent to an increase of 5.4% with respect to the $49,921 million reported up to July 2017.
The Effective Rate in Dollars increased from 2.40% to 2.43%, while the Basic Passive Rate continued for the second week at 5.8%.
The Central Bank of Costa Rica announced on Wednesday, October 10th that after the 0.10% decrease in the previous week, the Basic Passive Rate did not change and will be stable at 5.80% until next Wednesday, October 17th.
The basic passive rate is an average of the collection rates in Colones of the financial entities in terms of 150 to 210 days.
The Effective Rate in Dollars increased from 2.32% to 2.40%, while the Basic Passive Rate decreased from 5.9% to 5.8%.
The Central Bank of Costa Rica published on Wednesday afternoon, October 3rd that after the increase of 0.15% of the previous week, the Basic Passive Rate reported a reduction of 0.10% and will remain at 5.80% until next Wednesday, October 10th.
The Passive Base Rate went up from 5.75% to 5.9%, while the Effective Rate in Dollars rose from 2.23% to 2.32%.
The Central Bank of Costa Rica published on Wednesday, news that after recording a decline last week, the Passive Base Rate rose by 0.15%, and the level at which it will remain until next Wednesday, October 4 is 5.90 %.[GRAFICA caption = "Click to interact with graphs"]
Since the beginning of the year Banco de Guatemala has intervened in the foreign exchange market buying foreign currency in order to curb appreciation of the local currency against the dollar, but in recent weeks it has been selling currencies in order to minimize depreciation.
In recent weeks the exchange rate of the Quetzal against the US dollar has been trending upwards, which has forced the Bank of Guatemala (Banguat) to sell foreign currency in the foreign exchange market.So far this year, up until September 24, it has had to intervene selling $402 million worth of foreign currency.
In the eighth month of 2018, credit granted by Guatemalan banks to the private sector totaled $26,168 million, 5% more than was reported between January and August of 2017.
The latest figures from Banco de Guatemala show that credit to the private sector in the eighth month of 2018 grew by 4.8% with respect to the same month in 2017, rising from $24.970 million to $26.168 million.This increase was below the increase of 5.1% registered between August 2016 and 2017.
The Basic Passive Rate fell from 5.95% to 5.85%, while the Effective Rate in Dollars increased from 2.39% to 2.42%.
The Central Bank of Costa Rica published, on the afternoon of Wednesday, September 5, news that the Passive Base Rate fell, this week by 0.10% and the level at which it will remain until next Wednesday September 12 is 5.85%.