July 30, 2014
BCRA's rates regulation 'necessary to stimulate demand'
After weeks dennouncing “abusive rates” by financial institutions in his daily press briefings, Cabinet Chief Jorge Capitanich praised the Central Bank’s decision to regulate loans pushing down interest rates, saying it was “necessary to stimulate demand” and to “prevent abussive manoeuvres and the excessive interest rates dispersion”.
“The intervention on personal and title loans is very important to stimulate the demand for these loans and the acquisition of motorbikes and other vehicles […] in order to avoid abussive levy,” Capitanich said.
The Kirchnerite official pointed out the need to regulate certain strategies carried out by financial institutions that affect consumption and reduce consumers’ disposable income. “They make up charges, comissions to charge loan takers or set abussive rates,” he explained.
“It is in the State's interest to set a regulatory framework to prevent abuses that affect loan takers with a negative impact on consumption and on all Argentines,” Capitanich stressed. “Many countries regulate interest rates,” he explained, mentioning France, Italy, Germany, Colombia, Chile and Uruguay as examples.