• Costa Rica Coffee Guide

Costa Rica’s Basic Passive Rate decreases 0.25 percent

November 8, 2012

Costa Rica’s Basic Passive Rate (BPR) decreased from 10.25 to 10 percent on Thursday after remaining above 10 percent for more than three months.

On Oct. 25, President Laura Chinchilla expressed “concern about the high interest rates paid in the country and the effects on Costa Rican finances.” The government initiated a monitoring process, which prompted public banks to lower average rates.

BPR is used by banks to calculate loan rates, mainly housing loans. This means that the increase or decrease in the BPR affects a loan’s monthly payments.

Vice President Luis Liberman said he was satisfied with the reduction, and “the implications are very important for Costa Ricans, because each quarter point less in BPR means an annual reduction of some ₡15 billion [$30 million] for Tico debtors.”

“A family with a housing debt of ₡15 million [$300,000] would have a reduction in their monthly interest of some ₡4,000 [$8],” Liberman said.

The reduction, however, will not be noticeable for debtors until next year, while banks adjust their rates, and it affects those with savings in dollars, as interest rates will also decrease.

The BPR is an average of the interest rates of private and public banks and non-banking financial companies. It is calculated with all deposits in local currency received within six months and the average rate of a joint auction between the Central Bank and the Finance Ministry. It takes into account available balances of up to six months of each of the banks and companies included in the calculation.

In November 2011, the BPR was 8.25 percent.

You may be interested

Costa Rica celebrates U.S. support of global environmental plan
Climate Change
924 views
Climate Change
924 views

Costa Rica celebrates U.S. support of global environmental plan

Alejandro Zúñiga - January 27, 2021

U.S. President Joe Biden on Wednesday signed an Executive Order that, in part, commits the country to taking bold steps…

International communities commemorate Holocaust Remembrance Day
Global
2914 views
Global
2914 views

International communities commemorate Holocaust Remembrance Day

The Tico Times - January 27, 2021

Today marks the anniversary of the liberation of the Nazi Concentration and Extermination Camp of Auschwitz-Birkenau by Soviet troops on…

Best Costa Rica Movie of 2021: El Pajaro de Fuego
Arts & Culture
11 views
Arts & Culture
11 views

Best Costa Rica Movie of 2021: El Pajaro de Fuego

Tico Times - January 27, 2021

While Costa Rica is a favorite destination for many international film stars, it is not well known for its local…