More

    Private Sector Grew 14.5% in 2012, Foreign Currency Loans Up

    Must Read

    TCRN STAFFhttp://www.TheCostaRicaNews.com
    Like you, we are tired of corporate media that is politically driven and one sided. So we decided to focus on news that’s important to people. We’re Creating a Conscious alternative news network that we feel the world needs and we need your help! We can’t do this without you! Support news and media that matters and that can help change our world!

    During the previous year, credit to the private sector presented an annual growth rate of 14.5%, according to analysts, foreign currency loans were most desired due to the stability in the interest rate and the exchange rate of the currency.

    The resources that banks seek overseas where rates are historically low, in order to lend locally dollars said the Central Bank of Costa Rica (BCCR,. A situation that occurred during the previous year, was that the dollar liquidity was around 4.5%, this means that some entities in that currency used more resources from abroad.

    Given the dynamism of credit in dollars, it is expected that for 2013, the credit will be stable and so will currency and exchange rates.

    One economist and researcher at the University of Costa Rica, said that if interest rates fall in colones the trend could be reversed, however local currency yields are still high so traders maintain their preference for foreign currency borrowing.

    “I think the trend will reverse, while the interest rate in colones not less than 8% credit trend will continue as before,” said the economist.

    In recent days last year the exchange rate showed a slight upward trend, capital inflows, due to factors such as foreign investment and speculative capital Eurobonds, causing the exchange rate to remain stuck at the lower level therefore driven people to borrow in dollars.

    As for a possible upward exchange rate resulting in a hazard for those who opt for a loan, this situation is far away.

    For the analyst’s, it is important that financial institutions adequately assess their risk, since in the short term there would be risks, but in the long run especially if people assume other debts.

    Overall in 2012, the foreign currency lending increased in the order of 17.8%, while the national currency was 12.3%, for an annual growth rate of 14.5% in private sector credit.

    The Costa Rica News (TCRN)
    San Jose Costa Rica

    Private sector, exchange, costa rica, costa rica news

    Resonance Costa Rica
    At Resonance, we aspire to live in harmony with the natural world as a reflection of our gratitude for life. Visit and subscribe at Resonance Costa Rica Youtube Channel https://youtube.com/@resonanceCR
    - Advertisement -

    Subscribe to our newsletter

    Get all the latest news, events, offers and special announcements.

    Latest News

    The Transformation of Nutrition for Well-Being in Costa Rica

    Modern living conditions and human quality of life are better than ever today. However, neither physically nor psychosocially have...

    More Articles Like This

    Language »