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Costa Rican leader proposes to cap credit rates

Tuesday, August 27, 2013

Costa Rican President Laura Chinchilla on Monday sent a bill to Congress that seeks to limit the interest rates banks and stores charge on credit both in colons and dollars, the Economy Ministry said.

The bill would forbid credit when the interest rate charged is more than double the average rate over the past three months in the regulated national financial system.

The Economy Ministry said the bill was aimed at preventing banks from abusing consumer rights by charging excessive interest, particularly on credit cards and credit extended by stores.

Source: Reuters