President proposes setting of commercial bank interest rates

www.vheadline.com Posted: Monday, February 17, 2003 By: Robert Rudnicki

President Hugo Chavez Frias has announced that the government is considering setting commercial banks' lending rates following the introduction of price and foreign exchange trading controls.

If the measure is taken, it would be the first time in around ten years that the Venezuelan government had felt such a necessity. 

According to the President, commercial bank lending rates should not be higher than 30%, hinting that the Central Bank of Venezuela (BCV) may cut rates to help poorer Venezuelans who currently cannot afford to borrow. 

"I would fix lending rates at a maximum of 30% ... I want rates to be fixed, I want rates to be cut and I want the BCV to fix the rates."

However, despite the President's comments, the BCV will have to take the final decision on whether or not to move ahead with these kinds of measures.