By the A.M. Costa Rica staff

Government presents two bills to increase the access to more credit for people with high debts and low cash flow.

The minister of the Presidency, Víctor Morales-Mora, presented two bills Wednesday to the Legislative Assembly as a response of the government program for support on highly indebted persons. One seeks to cop the interest rates on credit transactions.

According to the government, the two bill aim to facilitate the fight against the situation of high indebtedness that affects thousands of people, improve the welfare of families and contribute to the reactivation of the economy.

The two bills presented by the government are:

- No. 21,651 Measures to Alleviate the financial situation of people. This bill has the goal of helping the financial situation of the indebted people with measures to be applied to public banks and regulate the excessive interest rates.

- No. 21,650, Strengthening of the Credit Information Center, known as CIC. This bill has the goal of organizing the information gap that currently exists regarding the debtor's debts profile.

"Protecting the pocket of people is a fundamental part of the priorities of the government of President Carlos Alvarado," said Morales-Mora. "We will continue talking with all the political parties to strengthen these projects and promote their prompt approval. We know that indebtedness is a national problem. ”

These two bills are the result of the government's intention to find a solution for the high levels of debt of the people, said the ministry in its statement.

According to the Superintendency of the Management of Financial Institutions, known as SUGEF, there are many people who receive just $17 or $86 in salary or pension. This is due to people's debt levels.

According to the government, the two bill's goal is to make two main changes.

The first is that public banks can allocate a portion of the resources to credit programs to help people with high debts.

The second change consists in establishing the competence to determine, in a technical manner, the maximum rate of credit purchases in order to fight against the so-called usury rates.

After the approval of these bills, the rates that are above the top limit defined by the Central Bank will be considered usury rates, and will qualify as a crime to the detriment of the consumer, said the government.

In addition, another change is to resolve the credit information gap that currently exists in the country by the CIC system. This change would allow the creation of more complete information to increase the efficiency of the financial system in the process to give a loan.






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Do you know the rate of interest you pay for purchases with your credit card?   We would like to know your thoughts on this story. Send your comments to: news@amcostarica.com 

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