Usury interest rates shoot up to 43.26%

This increase that applies for January 2023 has been certified by the Financial supervision of Colombia represents an increase of 180 basis points from the rate in effect in December 41.46% annual cash.

The usury rate represents the maximum value of indemnity or default interest an organization can charge to the agents of the economy and is equal to 1.5 times current bank interest rates by type of credit.

According to article 305 of the criminal lawwhoever, directly or indirectly, receives or collects in exchange for a loan of money or for the sale of goods or services for a term, utility or benefit that exceeds half of the Current bank interest.

Alejandro Useche, a professor at the Universidad del Rosario, said the usury rate affects many people in the country who take out loans and have to pay them according to how the legal interest rate is determined.

He stressed that the usury rate is calculated as 1.5 times the current bank rate, depending on the type of credit. “In turn, this current bank rate is determined by the free forces of supply and demand in the markets, that is, it is the free competition between the entities of the financial system that determines the interest rate at which the credits are granted.”

It should be recalled that the agreement on the minimum wage increase for 2023 included a revision of the formula for calculating the usury rate, which Finance Minister José Antonio Ocampo said there was no determination is made.

Source: El heraldo

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