The Executive Branch insists on defending the rescue credit plan announced on October 11th, claiming it won’t negatively affect the profitability of public banks, as noted in a recent report by the rating agency Moody’s.
This Monday, the Minister of Planning, Pilar Garrido, said that the rescue credit plan establishes that state commercial banks define the details of the program, as well as the debtors to whom it would be granted.
This allows financial institutions to design a safe product,”
said Garrido.
The Minister explained that this program does not represent a danger to the profitability of the commercial banks of the state because it commits the debtor, through a contract, not to acquire more credits for a prolonged term.
The signing of this document, as well as the commitment to receive financial education will help reduce the probability of default and minimize risk,”
argued Garrido.
In response to Moody´s report, Garrido commented that the profits of the participating banks would not have to decrease, they might even increase, depending on the percentage of debts contracted with creditors who do not participate in the program.
According to data of the General Superintendence of Financial Entities (SUGEF), the indebtedness of Costa Rican families is in historical figures. From June 2011 to June 2018, the average has doubled, reaching approximately ¢8.5 million.