Q COSTARICA
Q COSTA RICA – The General Superintendency of Financial Institutions (SUGEF) is proposing banks have additional capital requirements to discourage consumer and vehicle loans, and mortgages with excessive repayment terms.
The aim is avoid the excesses of indebtedness through too long term loans
Over the years, financial institutions in Costa Rica have been setting longer terms on loans with the objective of reducing the monthly payment.
The SUGEF argues that terms of over 30 years for housing loans and more than 5 in consumer loans, ie credit cards and 7 years on car loans, encourages overindebtedness of Costa Ricans. The practice also places the bank at risk.
The change would require banks, for new loans, to increase their capital by 20% in the case of consumer loans approved for
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