Car buyers shall pay a 150% guarantee

New restrictions make the purchase of cars a problem in Ecuador.

Buying a car is more difficult since April 28 due to the bank guarantees required. Two resolutions of the Monetary and Financial Policy Regulation Board, signed by the former Minister of Economic Policy Diego Martínez oblige the client and the importing companies to provide guarantees equivalent to 150% of the vehicle loan. Likewise, banks must increase their technical assets if granting loans.

70% of consumers who buy economic vehicles will be the most affected. For Genaro Baldeon, president of the Association of Automotive Companies of Ecuador (Aeade), the measures are not technical and possibly seek to restrict the automotive market, after the import quotas were lifted.

Source: http://www.eluniverso.com/noticias/2017/06/01/nota/6208972/150-garantia-comprar-vehiculos