For August, the Colombian Financial Superintendence (SFC) reported that the usury rate will be 33.32%, the highest level in the last five years, returning to the figures recorded in 2017, long before the pandemic. The indicator advanced 140 basic points when compared to the July rate (31.92%).
usury is the maximum interest that a financial entity may charge its clients for a consumer and ordinary creditlike credit cards, for example, that is, there will be an impact on the use of these plastics.
It should be remembered that in 2021, due to the economic consequences of covid-19, and in order to help citizens with the payment of their financial obligations, usury fell to a maximum in ten years, ranging from 25.98% at the beginning of the year and ending at 26.19%.
However, the upward trend that it has had in recent months will also continue until the end of the year, according to the vice president of research at Solidus Capital, Diego Palencia, since “in less than six months we have witnessed the change from a widely expansive policy to a contracting policy”assured.
Analysts project that by the end of 2022, the Banco de la República might add some 50 or 100 basis points more to the intervention rate, so current and usury interest would have the same behavior.
“It will continue to climb to all-time highs. We spent more than 18 months at a rate of 1.75%. Therefore, the rate increase transmission is just beginning. In each monthly increase in rates, the current interest has climbed between 25 to 60 basic points, for six months. These last two will be the highest historical: last month it rose 150 basis points and this month it will probably rise another 150 basis points, therefore usury would be between 33% and 34%. At the end of the year it is expected to continue growing around 35%”, he said.
For Alexander Ríos, financial expert and founder of Inverxia, when rates rise, long-term debt at high interest rates must be avoided.
“The recommendation is that if the credit card is going to be used, two things should be checked: first, that it provides points, miles or other types of benefits, because that will later represent a discount. And second, finance one or two installments, where the interest charge does not represent a large proportion of the payment for purchases.
The Superfinancial also certified the annual effective Current Bank Interest for the consumer and ordinary credit modality at 22.21%which represents an increase of 93 basic points (0.93%) in relation to the previous certification (21.28%).
While the Current Bank Interest for microcredits will be 39.47%, valid until September 30, 2022.
