In Costa Rica, the Central Bank and the Commission to Promote Competition are proposed to set a single percentage in the commissions paid by businesses for accepting credit or debit cards.
Law 21.177, which aims to empower the government to regulate the commissions charged by financial institutions to businesses, was presented to the Legislative Assembly by several deputies.
Bankers say that the cost of financing in US currency will increase because of the application of a legal reserve limit on deposits taken from abroad for periods of over one year.
Market participants expect that once the measure has been implemented, interest rates in dollars could increase by between 0.75% to 1.25%.
Gilberto Serrano, president of the Costa Rican Banking Association told Nacion.com that "...
The reference rate for investments and loans in the country dropped from 7% to 6.95% and will be located at that level until at least July 23.
The basic interest rate has gone down again to 6.95%, a level at which it stood for four consecutive weeks before rising to 7% last week.
The rate is calculated by the Central Bank of Costa Rica and is an average of the deposit rates given by financial institutions for savings with maturities of between 150 to 210 days.
The Costa Rican Banking Association is in possession of funding in the form of a trust for the construction of infrastructure and productive reactivation projects.
From a statement by the Costa Rican Banking Association (ABC):
The Costa Rican Banking Association is making available to the government $500 million to finance public works
• Escrow figure will be used for proper risk management and transparency.
Changes to the rules of the 8204 Act include the classification of customers according to risk levels and the automation of anti-money laundering controls.
In order to improve the identification of people at high risk of carrying out money laundering activities the National Council of Supervision of the Financial System (Conassif) has amended Act 8204, the regulation against money laundering and financing of terrorism.
With Central Bank interventions having already exceeded $100 million, on February 27th the dollar was quoted at 560 colones at bank counters.
There have now been four consecutive interventions by the Central Bank of Costa Rica (BCCR) to support the price of a dollar in the wholesale market in a week.
The exchange rate at the bank counters was quoted between 500 and 560 colones on Thursday, 27.
Experts consider that real estate, physical and virtual casinos, and failed businesses have conditions for being used in money laundering activities.
An article in Prensalibre.cr, reports that Luis Amador, Chairman of the Compliance Committee of the Costa Rican Banking Association (ABC), said: "From the economic activities that we identified as most at risk, the real estate sector is where the most money is laundered.
Financial institutions in Costa Rica will have a maximum of 48 months to implement the new measures which restrict lending.
The information was confirmed by the National System for Financial Supervision (Conassif), which approved "11 new regulations, with a phased implementation period of up to 48 months, when the original version stipulated 36. Most of the grace periods start from 1 January 2014 ", reported Nacion.com.
Eleven business chambers are insisting that the reforms to the Labor Code incite illegal strikes.
Nacion.com reports: "The amendments were approved unanimously by the Legal Affairs Committee of Congress, on August 1st, and have already been presented to the plenary."
"The chambers are opposed to the reforms regarding strikes, unions and syndicated workers, which are strengthened at the expense of standing committees (promoted by solidarism), something that encourages protests".
Uccaep from Costa Rica has appealed to the Central Bank to eliminate the credit limits imposed in January this year.
The complaint by the Costa Rican Union of Chambers and Associations of Private Enterprises is based on the poor economic performance of the country, which is experiencing a situation of rising unemployment and slowing production.
"The Monthly Indicator of Economic Activity (MIEA) grew by only 0.2% between December 2012 and April 2013. Excluding free zones, it shows a decline of 0.1%," said the institution in a statement.
The Sugef in Costa Rica has demanded tighter controls on banks when lending in dollars.
As part of the measures proposed by the Superintendent of Financial Institutions (Sugef), financial institutions must conduct a capacity analysis on the borrower, as well as requiring collateral and credit history, a test now only done when the loan is for more than $130,000.
Growth in this economic sector, which differentiated Costa Rica from other Central American countries, has lost the rhythm it held in previous years.
Details from the monthly index of economic activity (MIEA), which is calculated monthly by the Central Bank of Costa Rica, reveals that financial intermediation and insurance, which grew at a rate of 9% in early 2012, is now doing so at 6%: As for the business services sector, it is currently growing at 6% a year, while in 2011 it increased at a rate of 13%.
Private banks in Costa Rica are opposed to the $30 million fund that protects small depositors being transferred to the Central Bank.
Nacion.com reports that "private banks are against transfer of the administration of the $30 million fund which protects small savers, in case of bankruptcy of a financial institution, to the Central Bank, as ordered by a Bill ruled on in the Economic Affairs Committee of Congress. "
The Central Bank of Costa Rica said that the new formula for calculating the base rate means that it will be a more stable indicator.
Rodrigo Bolaños, president of the institution, explained that this will help over 400,000 borrowers who have credit obligations linked to this indicator.
The new methodology was presented yesterday and today will be published in the official gazette, meaning that it will become effective within 10 days, if there are no comments.