The Minister of Security Mario Zamora expressed concerns over the so-called “shark loans” or “drop by drop” (gota a gota), highlighting them as precursors to organized crime’s extortionate practices prevalent in other regional countries.
He appeared before the Security and Narcotics Commission to champion the urgent approval of file 23.575, which seeks to criminalize such activities and define their associated penalties.
Zamora emphasized the detrimental spiral these loan practices trigger, ultimately leading to outright extortion. “Suddenly, hitmen begin demanding regular payments under threats of violence, bypassing the initial loan stage entirely,” he remarked.
Legislative discussions, centered on the proposal put forth by deputy Gloria Navas of Nueva República, converged on redefining the term from “drop by drop loans” to “extortionate loans.”
The move comes as a reflection of the growing violence accompanying these crimes, with penalties being adjusted accordingly.
“The primary objective of this legislation is to safeguard human life and personal integrity. Documented deaths have arisen from such practices, making it crucial to delineate penalties based on the severity of the associated threats and actions,” added Zamora.
One root cause of the escalating issue, as posited by Rándall Zúñiga, director of the OIJ, is the financial exclusion stemming from the 2020 Usury Law. This sentiment was echoed by Mario Gómez of the Costa Rican Banking Association, who observed a notable surge in these loan practices post-2020, as evidenced by the General Superintendency of Financial Entities (SUGEF).
Gómez pointed out the need for a more inclusive financial strategy to tackle this problem.
“While combating crime is crucial, addressing the root causes of these loans is equally imperative,” he added.
Furthermore, Zamora highlighted the grim reality that these loans often serve as money laundering tools for organized crime, with ties to contract killings. He also emphasized the pressing need for legislative measures.
“With many victims too terrified to report, it’s not just a crime; it’s financial terrorism,” the Minister stated.
