Andina

Peru: Credit to companies for economic recovery will have low rates

00:01 | Lima, Apr. 2.

Peruvian Minister of Economy and Finance Maria Antonieta Alva has affirmed that the credits —to be granted to companies, with capital injection by the Central Reserve Bank (BCR) and the Public Treasury guarantee— will have low-interest rates.

The government official said this cost will be the result of the sum of BCR's reference rate and a differential aimed to cover the operating costs of financial entities.

"We are refining the details of interest rates, but the important thing is that we understand what the mechanism is, that is, the liquidity of the Central Reserve Bank with a guarantee from the Public Treasury," Alva expressed.

"It will determine that these are quite favorable conditions, the Central Bank's rate (currently at 1.25%) —plus a differential to cover the operating costs of financial institutions— are being considered. These will definitely be favorable conditions due to the participation of the Central Bank and the Public Treasury," she added.

For his part, President Martin Vizcarra affirmed that the Central Reserve Bank's benchmark rate is low and that the BCR governor has been asked to lower it even further.

"Now, it's not the time to have a profit margin; here the profit means not breaking the payment chain and the liquidity of the system," he indicated.

The Head of State stressed that —in order to guarantee the payment chain and liquidity— the participation of the Central Reserve Bank is necessary.


(END) CNA/JJN/MVB

Published: 4/2/2020
Most read