Daily Archives: January 1, 2014

Are we encouraged to save under the Bolivian banking system?

Lidia Mamani reports for Pagina Siete:

IT IS THE SECOND REGULATION OF THE FINANCIAL SERVICES ACT

Government will define the rates that banks pay savers

The standard will set new passive rates for people who have savings and term deposits (DPF), which are currently set by the authorities.

2013-12-30 08.32.54 amGovernment will define passive interest rates that financial institutions pay to their savers who have deposits until the middle of January next year.

This measure will be included in the regulatory decree of rates of credit for the production sector. The announcement was made by economy and Finance Minister Luis Arce Catacora.

“The rate, which is the rate of interest that banks pay to those who deposited their money in banks, it will be within the regulation of interest rates for the productive sector,” announced the authority after an interview with the State-run media.

The rate of interest is the fee that banks pay savers and is currently defined by these.

Arce said that fixing the percentage will be both for the box of savings and the fixed deposit (DPF), a measure which responds to the regulation of the financial services act, adopted in August 2013.

The measure will take effect from next year [2014], it is expected to get approved the regulation until the first half of next January.

Currently financial institutions have interests different for credit and savings. According to data of the Central Bank of Bolivia (BCB), up to the last Monday 23rd, commercial banks offered, by deposits in savings, an interest rate from 0.01% to 2.68% (see chart).

While for the DPF passive rates range from 0.01% to 3.64%, scales that depend on the time and the financial system. In financial institutions specialized in microfinance, the interests that savers perceive on their deposits are also variable.

Still unknown if the new measure ready the Government will increase passive interest rates or will remain.

Until December 22, this year [2013] the deposits from the public in the financial system in savings totaled $5,256 million dollars, excess in $871 million dollars compared with last year [2012].

http://www.paginasiete.bo/economia/2013/12/30/gobierno-definira-tasas-pagaran-bancos-ahorristas-9951.html

Had there be certainty over the rationale and real economic capacities under this government, the above news would be OK… however, we are entering a very conflicting year, the illegitimate re-re-election, the new public service law and that state-owned enterprises earning higher salaries than the president himself… shows the contradiction, the ochlocracy wrongdoings. If we add lack of justice and cocaine booming business topped with violence and crime… we can only hope to revert our sad destiny and rule out current ochlocracy, once and for all!!