Some deputies have shown great skill in managing public opinion. By law, they try to make believe that they can change reality for a paradise. The proposal to put a cap on bank interest on credit is one of them. Where do its proponents get that in Panama loans are granted with the highest interest rates in the world? Have they measured the consequences of their proposal? In Panama, there are enough banks for there to be healthy competition and we have seen and experienced that for decades. The payment terms, interest, etc., found in the market, have allowed access to credit to people with very limited resources. What they are doing is demonizing one of the most competitive industries in the country. Instead of their verbose irrelevant demagoguery, why not put a limit on hiring employees in the state? Why not put a limit on so much credit that will force us to tax reforms that we will all regret? Why not limit so much useless spending on cars, travel, wages, and privileges? If they were able to set the example, many would follow, but now they demand what even they cannot meet: limits. LA PRENSA, Oct 10
Countries around the world need to get control of THIER spending before they tell the citizens what to do. Between governments and central banks the world monetary system is going to hell in a hand basket. In panama we are fairly lucky that they dont have their own central bank as we know the elected ones would run the printing press 24/7 just as Venezuela and Zimbabwe did. So that just leaves us to worry about the USD crashing. It has already lost 97%of its value since Nixon closed the gold window in 1971, so it only has 3%to go. Feeling lucky?????
Unnecessary borrowing, spending, and thieving by the state are colossal problems, as the article suggests. But capping consumer interest at 18% per annum is not an unreasonable move. If a borrower's poor credit capacity demands a higher rate than that he shouldn't be borrowing in the first place. And if banks cannot make a profit from borrowing at 6% and lending at 18%, plus all the outrageous fees they charge, they shouldn't be in business.