Luis Molina Achecar, president of the BHD Bank, confirmed that interest rates are dropping. He said banks are paying 16-18% on deposit certificates and lending at around 24%. Molina commented that the large commercial account rates drop first, and then consumer rates. Andres Aybar, president of the Banco Mercantil, confirmed the trend in Hoy newspaper. “Well, they are dropping, they are dropping fast. I perceive interest rates have fallen four to five points,” he said when interviewed at the American Chamber of commerce luncheon. Aybar attributed the decline to the Central Bank returning all money deposited in deposit certificates with that institution. The decline brings major relief across the board. After being stable at relatively low levels for over four years, interest rates climbed significantly in mid-2000, causing major financial difficulties to those who had borrowed money.
