NOVELTIES FOR THE ISSUANCE OF THE BANK INTEREST RATE
Through Decree 455 of 2023, the Colombian Government issued certain conditions for the interest rates calculation. The most relevant changes are summarized below:
Colombian Finance Superintendence (CFS) may use credit’s market information to calculate the applicable interest rate, and the information provided by financial entities. CFS may apply the term, debtor profile, and product as factors to determine the relevant rate.
The CFS shall calculate the interest rates for the following new credits modalities: (a) Rural productive popular (up to 6 minimum legal wages), (b) Urban productive popular (up to 6 minimum legal wages), (c) Rural productive (between 6 and 25 minimum legal wages), (d) Urban productive (between 6 and 25 minimum legal wages), and (e) Productive of higher amount (between 25 and 120 minimum legal wages).
The interest rates for such new modalities were issued on March 31st and will be in force from April 1st until September 30th, 2023.
Additional features of the new credits’ modalities are available to be reviewed on Decree 455, 2023, at the link below: https://www.funcionpublica.gov.co/eva/gestornormativo/norma.php?i=205884
Author: Santiago Garzón I sgarzon@lloredacamacho.com I Financial Law & Capital Markets