Financial Board creates a new segment of ‘Microcredit of social interest’, which will have an annual interest of 1%

The The Financial Policy and Regulation Board announced this afternoon that it had issued Resolution No. JPRF-F-2022-010, with which it resolved to establish the maximum interest rate for low-income loans belonging to the microcredit segment at 1% per year. This was done by attending to Executive Decree 284 of December 10, 2021, which declared the granting of social interest loans a national priority. These credits would be delivered to the agricultural sector, to microentrepreneurs, among other beneficiaries who meet the required profile of social interest.

In the ordinary session called on December 30, 2021 and held this January 3, 2022, the resolution was issued in whose fundamental aspects it provides:

• Create the segment called “Social Interest Microcredit”;
• Establish the maximum interest rate of 1% for the aforementioned segment;
• Have BanEcuador BP manage the necessary resources with the Ministry of Economy and Finance, prior to the delivery of the loans; Y,
• To entrust the Superintendency of Banks, within the scope of its functions, to control the risk management of this financial product of Social Interest Microcredit.

The President of the Republic, Guillermo Lasso, has spoken of generating this type of credit this January and has admitted that These will generate a cost or subsidy to the State. Therefore, it is still necessary for the Ministry of Economy and Finance to establish the resources and deliver them to proceed with the delivery of said credits. The granting of the microcredits was a campaign offer from President Lasso when he was a candidate.

The Financial Policy and Regulation Board that is part of the Executive Function and has legal status under public law, with administrative, financial and operational autonomy, it is made up of three members: Catalina Pazos Chimbo, Iván Eduardo Velástegui Velástegui and María Paulina Vela Zambrano (president). (I)