The Board of Monetary and Financial Regulation has issued some resolutions such as the intention to maneuver setbacks at financial and tax level to give encouragement to the economy.
As published yesterday by Daily Expreso, the tap was a bit more open for bank reserves, so that money -deposited by financial institutions in the Central Bank of Ecuador (BCE), which belongs to bank customers- this will serve so that the latter can buy or invest in foreign debt bonds, that is, to finance the state.
But days ago, the monetary authority also put a ceiling on the amount of securities the BCE can buy with the liquidity surplus. That is, it will be able to purchase documents or obligations to the Ministry of Finance, the maximum was set for an amount of up to 800 million dollars, what the state roughly spends a month in wages and salaries.
The maximum rates allowed for loans were also changed. For the consumption, the ceiling was set up to 17.30%, whereas before, cardholders paid a fee of up to 16.3%. Ie, given that banks have had to raise deposit rates -to attract more savings, since there has been a decline in deposits,- they are forced to demand more in their loan rates. Finance has more become more difficult.
Translated into English by Pierina Abad