After the Western Bank announced this Friday that it lowered its interest rate for its credit cards, President Gustavo Petro thanked the financial institution for having made that decision.
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Through his Twitter account, the head of state said: “The AVAL group followed the example. I know that reducing the interest rate means lowering the rate of profit when the Bank of the Republic raises the interest rate. The sacrifice of financial gains will improve the country’s economic situation and bank stability.”
Two weeks ago President Petro asked the banks lower interest rates in order to revive the economy.
The board of directors of the Banco de la República has increased the intermediation rate of credits in order to control inflation.
Banco de Occidente reported that the benefit applies to all purchases made in supermarkets, medical services, education and public services.
However, the entity specified that the measure applies to Aliada, Clásica, Economy and Joven credit cards, regardless of the quota assigned.
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The AVAL group followed suit. I know that reducing the interest rate is reducing the rate of profit when the Banco de la República raises the interest rate
The sacrifice of financial gains will improve the country’s economic situation and bank stability https://t.co/rFhiKhMVjq
— Gustavo Petro (@petrogustavo) March 10, 2023
Through a statement, Banco de Occidente reported the measure: “Starting Monday, March 13, Banco de Occidente credit cards will have a special rate for purchases in the most relevant categories of household consumption. The special rate for this type of purchase it will be 1.53% monthly nominal, which is equivalent to 20% effective per year, and represents a reduction to less than half of the current rate and applies to all credit card quotas”.
The first bank to announce the reduction in its interest rates was Bancolombia and this was joined by Davivienda and Banco de Occidente (which is also part of the Aval group).
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Regarding the reduction of interest rates by the banks, President Petro expressed: “A good measure to lower interest rates by private banks. This will keep the financial system solid and the possibilities of stopping the economic stagnation.
According to the Head of State, “these measures will serve to boost the national economy, taking into account that the interest rate set by the Central Bank is 46%, while inflation in February was 13.28%”.
Asobancaria supports call to lower interest rates
Jonathan Malagón, president of the Colombian Banking and Financial Institutions Association (Asobancaria), through his Twitter account expressed his support for President Petro’s call to lower bank interest rates for users.
“This is President Gustavo Petro. Despite the increase in liquidity and high monetary policy rates, banks reduce rates for their users and from Asobancaria we subscribe to the government goals in terms of financing to the popular economy”, said Malagón.
* The company Grupo Aval is part of the business group that controls the company Casa Editorial EL TIEMPO.
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