I was under the impression that companies making loans were compelled to offer those loans at an interest rate of 1% per month or less! I appreciate that most lending organisations got round this law by charging a fixed sum rather than stating the actual monthly % rate, so that they could argue that the sum was made up of 1% per month PLUS office charges (Otros). In view of the fact that the Government has permitted the Central Bank to pay 28% - 30% per annum on Certificados, they are obviously going to allow LOANS at greater returns than the ineterst rate they are paying out & that means they are going to be charging in EXCESS of 2% per month (nearer 4% I would suggest).
As it would be MOST difficult to justify 1% as the monthly interest rate & nearly 3% per month in 'OTROS', has this law been changed? If NOT, what is the Governments position in condoning banks & finance houses to break the law?? - Grahame.
As it would be MOST difficult to justify 1% as the monthly interest rate & nearly 3% per month in 'OTROS', has this law been changed? If NOT, what is the Governments position in condoning banks & finance houses to break the law?? - Grahame.
