Costa Rica News – The government gave a deadline of February 2 for public banks to establish a ceiling on deposit rates offered to investments of state institutions. Banco Nacional and Banco de Costa Rica, said that concrete measures will be announced in the coming days.
For its part, the government explained that the measure is taken in order to reduce the rate competition among banks and that, according to the executive’s economic team, exerts upward pressure on interest in colones.
During the previous year, the competition to attract resources, both in the banking market and in the market led to the rise in interest rates.
Luis Liberman, turned to the National Bank, Banco de Costa Rica and Bancrédito, ie the three state banks.
Mario Rivera, manager of the Bank of Costa Rica, said that they are evaluating the actions necessary to comply with the guidelines suggested by the government.
Rivera explained that banks must agree with public institutions, with the aim that the yields are better aligned with market conditions and that in turn will keep a reasonable return on their investments.
The banker categorized as positive appraisal of speculative capital and the measures to be taken to discourage entry.
Fernando Naranjo, manager of the National Bank, said the issue will be discussed internally in the institution and that once action is taken will be announced.
For his part, Minister of Finance, Edgar Ayales, said it will use between 200 and 300 million dollars from Eurobonds to lower the rate of deposits in the local market. According to the chief measure seeks to reduce the high interest rates that have attracted speculative capital.
Although Governing Council a rough draft, said the Government does not yet a definitive document. The draft of the measures that will be taken in conjunction with the Central Bank. The project will be submitted to the Legislature on Monday.
The Costa Rica News (TCRN)
San Jose Costa Rica