The intention would be to overcome the paralysis of $320 million from the Development Banking System of Costa Rica by giving over its management to the Central Bank.

The fund consists of 17% current accounts from commercial banks in Costa Rica, known as the “bank toll” amounting to $320 million which is supposed to be used to grant loans to micro-entrepreneurs, within the Development Banking System.

So far the funds have not been used for their intended purpose, as the bank that managed them, the Banco Credito Agricola de Cartago (Bancrédito), would have put itself at risk, being unable to maintain its capital adequacy indicators measured by the Superintendent of Financial Institutions (SUGEF).

Bancrédito has been relieved of managing the funds, but the problem would persist with any selected banking institution, as SUGEF refuses to introduce any flexibility in its capital requirement calculation, as it argues that “it’s people’s savings money and must be properly taken care of”.

The bill to commend the management of these funds to the Central Bank is polemic from its inception. “The Central Bank was asked if its law allows the administration of these types of funds, whether it has the staff and technological infrastructure and if it can refuse to an obligation included in a law.”

Source: Nacion.com