Managers of Banco de Costa Rica (BCR) and National Bank (BNCR), Mario Rivera and Fernando Naranjo respectively, reject the imposition of the Central Bank of Costa Rica (BCCR) to set a limit on placement creditworthiness of financial institutions regulated by SUGEF.
Mario Rivera, manager of Banco de Costa Rica, said he cannot agree with the measure because “since the opening of the monopoly, the financial market has acted under canons of competition, with some imbalances to state banks. However, we could compete (…) However, decisions like this hamper growth and the financial system will be sectors within the economy which will bill them. ”
For the manager of the Banco de Costa Rica, the manufacturing sector will be most affected because appease their growth. Rivera explained that corporate credit dollar moves in this currency and where there are more restrictions. Therefore, the limit in the placement will cause the price of loans in that currency increases and the possibility of access to credit will be much less. The consumer credit side, is expected to brake the vehicle and housing placement.
Additionally, in the banking sector is said to be seen whether companies are willing to take the supply of credit in local currency, however depends on the rates are adjusted according to supply and demand reality.
For his part, Fernando Naranjo, National Bank Manager, said that may not be in favor of a measure limiting the country’s economic growth. “I do not like the measure, if you generate more employment and wealth is through credit. I find it hard to understand an alternative that goes against the interests of the country, “said Naranjo of National Bank.
Rivera agreed with the position, adding that: – “If we analyze the macroeconomic program BCCR, the expected growth of production is 4%, and although it is still good, is lower than in previous years. This means that you are going to hit a brake on the economy in general, “Rivera voiced.
For his part, Jimenez Ronulfo economist said the move ties the hands of local banks, but encourages “bank bag”. On this last point, Rivera added:
Jimenez pointed out that rates may rise, “by limiting the amount, we somehow must ration credit among the plaintiffs, this would lead to higher rates. Another way would be less credit rationing for riskier projects or new customers.“ The specialist added that the central problem is not attacked because they are high in colones rates are attracting speculative capital.
The Costa Rica News (TCRN)
San Jose Costa Rica