The executive director of the Financial System Supervision Authority (Asfi) clarified that these “commercial activities” that are offered through newspaper advertisements are not under the control and supervision of the regulatory authority.
In recent months, in Bolivia the supply of loans between individuals has increased and the interest charged on them even reaches up to 10% per month. A rule provides that the limit rate for offering loans is 3% each month.
“I lend cash (cash)…!!! Super agile and without turns, any amount of money from US$1,000 to US$50,000 amortizable...". Advertisements like these are published in local and national newspapers, and on internet pages, which detail various telephone numbers and contact emails to access the service.
There is no more information about the people or the “serious companies” that provide the loans, they only need their addresses so that citizens can consult these offers “without obligation.”
La Razón contacted some of the advertisers by telephone and found that most of them offer loans to the public at interest rates ranging between 2% and 3% in exchange for receiving houses, land, apartments, villas as collateral. (farms), machinery, vehicles, motorcycles, jewelry and others.
In addition, it was verified that other advertisers make loans on computers, plasma televisions, and smartphones for an interest of up to 10% monthly. One of the people stated that the collection of this high amount is due to the fact that the resources granted are “small.” Meanwhile, he pointed out that the commission is reduced between 2.5% and 3% when loans are made for amounts greater than US$25,000 and US$30,000.
All those consulted stated that the delivery of the money is immediate and that they also carry out said commercial activity constantly. Two businessmen agreed that commercial activity takes place in real estate offices, companies or societies that are dedicated to the purchase and sale of apartments, houses and land.
The executive director of the Financial System Supervision Authority (Asfi), Lenny Valdivia, clarified that these “commercial activities” that are offered through newspaper advertisements are not under the control and supervision of the regulatory authority.
“In response to the good economic times we are going through, there is a growth in loan houses, but these are not under the control of Asfi,” he noted. Valdivia indicated that in some countries these types of “trade acts” are controlled by the State and in others they are not, because this depends on the size of the financial market.
The director explained that loans between individuals only represent an illegal activity when a natural or legal person charges interest greater than 3% per month, as provided by law, incurring the crime of usury, typified in the Penal Code. For this reason, he stated that a legal process can be initiated against these individuals who commit this crime.
For the economic analyst, Julio Alvarado, the increase in “person-to-person” loans is due to the fact that the informal sector also grew and “there is more currency in the country, the sale of natural resources generated more money and there is more liquidity.” . The expert added that it is possible that through the activity “money from drug trafficking and smuggling is laundered.”
According to the researcher at the Center for Studies for Labor and Agrarian Development (CEDLA), Carlos Arze, people resort to these high-interest loans because of the personal emergencies they have and because they require quick capital, and to avoid the procedures required. the financial system. But “they are subject to being victims of usury.”
Asfi could regulate pawn shops. Asfi reported that it is analyzing the possibility of regulating pawn shops throughout the national territory. “At this moment the pawn shops are not under the control of Asfi and we are in an evaluation process to see if the current situation of these businesses warrants control and what type of supervision,” said its executive director, Lenny Valdivia.
The CEDLA researcher, Carlos Arze, indicated that if this measure is consolidated, it will be positive. “All companies, institutions and subjects that carry out activities that generate profit, and those that are susceptible to usury and speculation, should be regulated.”
They set the limits. On January 31, 2004, former president Carlos Mesa authorized, via decree, that the “maximum limit of the usury interest rate” would be 2.5% monthly for the entire financial system. The regulations provided that the usury rate would be determined periodically by decree, depending on the conditions of the financial market.
Money offer in media ads:
Advertiser 1: Unidentified
“We give you the money immediately, we only need the papers for your house, your land or your vehicle as collateral, although it remains in a deposit. The interest is 3% monthly, with no fixed term.”
Advertiser 2: Unidentified
“If your computer is worth US$1,500, we will lend you a minimum of Bs 700 and up to Bs 1,000 with a rate of 10% per month, which is Bs 70, which is not much. We give a rate of 2% to 3% for loans of US$30,000.”
Advertiser 3: Unidentified
“We are a serious company that gives loans from US$2,000 onwards to companies and individuals at 3% monthly interest. “We receive houses, lots, heavy equipment, which we store in warehouses.”
Advertiser 4: Unidentified
“We grant loans on real estate and cars with an interest of 2.5% and 3%. We have partners who approve that rate. We give loans to merchants and we try to ensure that the financing is continuous.”
Advertiser 5: Unidentified
“The loan of Bs 10 thousand is made with a rate of 4% per month and within the term you define. If you have a vehicle, you leave it in a deposit as collateral until you pay your debt and we sign a contract.”
Advertiser 6: Unidentified
“We lend you any amount with an interest of 2% per month on your house or vehicle, there are no commissions, there is no fixed term. We sign a loan document and I give him the money.”
