Deputy asks CABEI to lower the country’s interest rate

Representative Ramírez insists that the bank’s rate to the country is very high. Photo: Assembly.

The deputy of the National Liberation Party (PLN) Paulina Ramírez, who also chairs the Financial Affairs Commission, sent a letter to the newly appointed new president of the Central American Bank for Economic Integration (CABEI), Gisela Sánchez Marototo request before the Assembly of Governors of the bank, a modification of the policy that is reflected in a decrease in the interest rate for our country.

Ramírez recalled that the Comptroller General of the Republic warned that during the last year that entity has maintained a policy of higher interest rates in relation to other international organizations.

“It is strange that CABEI offers such high interest rates to a country that, as of December 31, 2022, has as its largest creditor in terms of authorized external credits in execution, for a total of 10 projects that amount to $1,755 million and represent 41.77% of the total contracted portfolio“said the green-and-white.

According to the data provided by the Comptroller General’s Office, the CABEI rate reaches 8.64% while the weighted rate of other organizations reaches 7.65%.

The controlling body, based on data from the Ministry of Finance, specifies that the rate used by the other creditors is Secured Overnight Financing Rate (SOFR), while CABEI in the Third Quarter of 2022 used the six-month LIBOR rate.

An example of unfavorable financial conditions is found in loan contract No. 2317 for $700 million that will finance the “Emergency Program for the comprehensive and resilient reconstruction of infrastructure”, processed under file 23,365 by this Legislative Assembly.

As a result of the demonstrations that arose within the Treasury Commission, the parties were able to agree to lower the high interest rate that CABEI was initially charging the country, since it was originally 8.87%.

However, later the banking entity itself reduced its rate to 8.64% and managed to obtain funds so that $67 million had a rate of 7.62% and $43 million had a rate of only 1.50%.

The Comptroller’s Office warns that although “A reduction in the cost of credit can be positive, this cost is even higher than that of other international organizations.”

Costa Rica is founder of the Central American Bank for Economic Integration and since 1960 has maintained a close relationship with an entity whose objective is to promote integration and balanced economic and social development.

“It is paradoxical that despite the objective of CABEI and that Costa Rica has full confidence in this organization by making it its largest creditor, said relationship does not materialize in better financial conditions and, rather, other international organizations are the ones that offer interest rates. lower interest rates,” Ramírez insisted.

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