Popular Action presented an initiative to exempt SMEs from the BCR interest rate cap | microenterprise | central reserve bank of peru | PERU

2023-11-10 06:24:19

The Popular Action bench presented a legislative proposal that aims to temporarily exempt SMEs from the interest rate cap established by the Central Reserve Bank of Peru (BCRP).

Bill No. 634-2023-CR aims to put an end to informal and “abusive” loans known as “gota a gota.”

Along these lines, the initiative promoted by Congressman Wilson Soto seeks to incorporate into the current Law No. 31143, a Sixth Final Complementary Provision with the objective of exempting small and microenterprises from the application of article 52 of the Organic Law of the BCRP by a period of three years.

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This article of DL N°26123 of the BCRP sets the maximum and minimum interest rates semiannually to grant credit to small and micro businesses to regulate the financial market. It also contemplates the elimination of the collection of capitalization of interest, regulation of commissions, return of credit insurance with redemption or refund and the elimination of interplace collection.

This has “helped reduce the abusive behavior of some financial institutions towards consumers,” according to a congressional communication.

AP’s legal initiative bases its proposal by arguing that despite these regulations, people without a credit history or considered risky have faced difficulties in accessing loans given the demanding criteria for credit qualification, which has led people to resort out of necessity to the Informal and abusive loans known as “gota a gota”.

According to the author of the legal proposal, Soto Palacios, it seeks to ensure that SMEs – which are not subject to these interest rate limits – can access more flexible rates from banks and financial institutions, in order to prevent citizens opt for informal loans.

Given:

The Central Reserve Bank of Peru has increased the maximum interest rate for the period from November 1, 2023 to April 2024 to 101.86% in national currency and to 82.94% in foreign currency.

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