Current Bolivia government knows about this century’s economics as I can write and speak fluently in all the more than thirty indigenous languages of their pluri-multi-nation…
Hilton Heredia reports for El Deber:
Economists and banking see more risks in law
The ‘ceiling and floor’ rates scare industry. The ASFI does not see problems
The sole fact that the Government set maximum and minimum interest rates for housing and the productive sector, carries a moral ‘high risk’ as economic agents can begin to distrust of the financial market, say economists and bankers.
The reason? The Executive Branch is stepping in to the forces of the market (free supply and demand), and seeks to maintain ceiling and floor rates for loans and deposits.
This scares the bankers who argue a reduction in its profitability. “The State regulation is not the best alternative. Let’s see how is implemented in the country”, said the President of the Association of Private Banks of Bolivia (ASOBAN), Kurt Koenigsfest.
He adds that they handle money from depositors, from third parties, and accordingly should be responsible at the time of loaning and who should be subject to credit so that the loan can be returned.
On the other hand, economists Teófilo Caballero, Carlos Schlink and Armando Méndez question the fact that banks will be imposed a percentage of all their portfolio of deposits so that they loan for social housing and productive sector.
The problem can arise that guarantees are not sufficient to be able to support those credits.
Then, the banks realize this and can direct their resources to other investments, even placement of bonds, warn specialists.
Make note that the Government will redirect credit to social organizations, namely small producers, who have 10, 15 or 20 sheep, pigs, chickens or cows and their warranties are not significant. That is why bankers and analysts suggest the market’s own regulation.
The Authority’s Supervision of the financial system (ASFI) said that within 90 days, rates must be set for housing and production loans. For the purchase of apartments there will be loans up to $100,000 dollars and for the purchase of houses $120,000.
The regulator announced that there will be bidding processes, sanctions, fines and other measures for those who violate the rights of the financial consumer. Penalties shall be imposed by categories (major, medium and minor).