Argentina to Cap Interest Rates on Loans on Pension Payments

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articlenopic By Bill Faries and Eliana Raszewski for Businessweek.com

Dec. 21 (Bloomberg) -- Argentina will set limits on interest rates that can be charged to retirees seeking to get loans against future pension payments, President Cristina Fernandez de Kirchner said.

Pensioners received about 10.9 billion pesos ($2.5 billion) this year through Nov. 30 and paid a maximum interest rate of 122 percent and an average of 70 percent, Fernandez said. With this measure, rates on loans to pensioners will be capped at 5 percentage points above that charged by Banco de la Nacion Argentina for the same type of loan, Fernandez said.

“We believe in loans and in loan institutions, but we don’t believe in... Read Full Article

 

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