El Deber reports:
Banking system to contribute 6% of profits to social function
The cabinet yesterday approved a supreme decree approving the participation of 6% of the profits of the bank, to be used to fund credit guarantee income housing. The information was released by the Presidency Minister Juan Ramon Quintana.
The first section of the Act anticipates that the state’s governing and financial system which ensures universality of financial services in the country.
According to the decree issued yesterday, unofficial, state that said Fund may make total credit risk coverage up to 20% of the social housing credit.
Adds that multiple banks will set aside 6% of the amount of its 2014 net profits for the Fund.
For its part, the Association of Private Banks of Bolivia disagree to have more burdens on the sector. Consider that banks will be weakened in its ability to grow / MAM.
Unfortunately, the ruling ochlocracy does not know how to motivate and really help fight poverty. What this government is doing is to transfer the responsibility to the private sector. Of course, all the useless spending has left our treasury almost empty…
What the Bolivian government needed to do was to support Corporate Social Responsibility in a way that projects are sustainable and there would be a win-win situation for everybody. Instead, they merely raise taxes with the excuse and with very limited capacity to do anything, this new “tax” only causes the Bolivian banking system to be less competitive.