El Diario reports:
Former BCB president passes from review to approval
The former president of the Central Bank of Bolivia, academic Armando Mendez, expressed favorable views on the decision of the Cabinet on Wednesday [07/10/2014], when approved the 2055 Decree setting ceilings for credit operations to the productive sector in a range of 6.0 to 11.5 percent. Mendez said tersely that “people will be happy with the new rates.” In recent months, Mendez questioned the regulation of banking interests by saying that they addressed “past practices.”
“What the decree says is that the rates offered by banks are liked by people. Same for the productive sector, rates are very low, everyone will be satisfied “, briefly noted the economist, who is also a university professor and former deputy-secretary for the Treasury. Regarding the official decision, stated that the interest rate of 11.5% for microenterprises are low compared to what financial institutions offered. The Finance Minister said that the interests covering microentrepreneurs were above 21 percent.
Regarding to the sustainability of the financial system with the implementation of the system that regulates rates, for both housing and now production, declined to pass judgment and said that “time will tell”.
The heading of this article is a little negative. It suggest that expert economists only criticize current government.
Well, by raising the interest rates on savings, this ochlocracy has finally done something right. Whereas it is just a desperate attempt to win its illegitimate re-re-election, but it is something positive for Bolivian savers.