Costa Rican Central Financial institution Invitations the Tourism Sector to Make investments their Loans in Colones

Days after the tourism sector requested an extension of the solvency assessments to be carried out by the financial institutions of the debtors of the Central Bank of Costa Rica, the legal and regulatory conditions are already in place.

This was explained by the President of the Central Bank of Costa Rica, Rodrigo Cubero, who also urged companies in this industry to opt for loans in colons. “It is not necessary to change the laws, it is not necessary to change the regulations. Ultimately, it is an exercise that financial intermediaries have with their clients, ”the official said, adding that the regulatory space and resources for financial institutions have been sufficient to draw conclusions about the actual solvency of their clients.

“I would like to join in asking the tourism industry to think about colonizing their loans (to pass them on to Colones). There’s no reason you can’t. The fact that their income is largely in dollars doesn’t prevent them from borrowing in colons, ”added Cubero.

The official argued that in doing so, the sector could take advantage of the favorable terms local currency lending is currently offering to get out of the current crisis, which he has classified as “massive”.

For example, according to estimates by the central bank, the decline in hotels and restaurants was only 40.7% in 2020. “There is no doubt about the impact of the industry,” emphasized Cubero.

Two provisions

For his part, the Director General of the National Bank, Bernardo Alfaro, confirmed that the National Council’s guidelines for the At sight of the financial system (Conassif) in the past week will allow them to make the conditions more flexible in the coming months.

“You made two very relevant provisions. The first is that by December 31, 2021, the necessary adjustments, agreements, extensions or adjustments can be made without this implying that the operation is classified as a “special loan”. We can keep Make adjustments.

“The other very important provision is that a debtor’s solvency was previously measured with a one-year horizon. Now it can be measured throughout the life of the loan, ”argued Alfaro. This last measure would allow banks to continue to classify the sector’s default in a lower risk category so that they can continue to service it.

The official pointed out that more than 80% of the National Bank’s customer portfolio in the tourism sector had adjustments and in some cases “in principle” grace periods of up to 12 months.

“We’ve given them enough leeway to help them recover, and if we need to build on that, we will. The last thing we want is to somehow attack the goose that lays the golden eggs. The Tourism sector is fundamental to the Costa Rican economy, ”he said.

Official claim

Last Friday, the two main chambers of tourism highlighted that the Conassif directive left out the most important aspect. And from March 31, financial institutions will again make assessments of debtors’ solvency.

The problem for the President of the National Chamber of Tourism (Canatur), Rubén Acón, is that this analysis is not based on pre-pandemic history. It would only take into account your current situation, the representative explained.

For his part, Costa Rica Hotel Chamber President Javier Pacheco insisted that programs be developed that are in line with the recovery in the industry. “Let’s do a project for the next three years and if that economic reactivation comes before, thanks to the necessary support, the help can be eliminated. Otherwise the sector will not leave, ”he said.