Victor Morales, Minister of Presidency, presented two bills this week to Congress that complete the directive issued by the Executive Branch on the program to help people highly in dept. The bills have the purpose of helping thousands of workers that currently have large debts that affect the well-being of the families and at the same time contribute with the reactivation of the economy.

“Protecting the wallet of Costa Ricans is a fundamental part of the priority of the Government of President Carlos Alvarado. We will continue conversations with all the political parties to strengthen these projects and promote their approval. We know that debt is a national problem and therefore we are giving it high priority”, commented minister Morales.

President Carlos Alvarado had announced the intention of the Government in finding a comprehensive solution to the high levels of debt of the Costa Rican population, which according to financial institutions has reached historical amounts.

The project gives commercial State banks a wider possibility to obtain resources with the purpose of using these in credit programs and measures to help the financial situation of those clients highly in debt.

It also seeks to establish in a technical way the maximum rate that regulates the financial market and the credit purchases with the purpose of battling usury rates.

Those who would benefit from this project would need to comply with a financial education program for three years and would not be able to acquire another debt until they have paid at least 50% of the rescue loan or until at least have the term has gone by.

The second project proposes the strengthening of the Credit Information Center (CIC) which currently only has access to see the debts that people have with institutions regulated by the SUGEF. The project would allow CIC to create a platform that shows the entire credit information for debtors, including for example debts at appliances stores and such.

It is estimated that once approved banks could take close to three months to implement the alternatives for clients.