The central bank The Chilean announced on Monday that it extended until August next year the deadline for banks to close the credit lines that it activated to face the effects of the health crisis, which expired in March.
The liquidity credit line (LCL) has a limit that corresponds to the average reserve in national currency, which to date is equivalent to about 5.5 billion dollars.
“To facilitate the termination of the LCL (…) the Council of the Central Bank granted its authorization so that the banking companies that require it, can progressively disarm the LCL for an additional 5 months, that is, until August 30, 2022, “said the agency, which established a series of conditions for this renewal.
The conditions include the automatic and successive renewal of the credits each week and the payment of a percentage of the total amount of the credits, among others.
In March of last year, the Central Bank raised the benchmark interest rate to its technical minimum of 0.5% per year and announced a series of measures to provide liquidity to the economy, which fell to historical levels in the middle of the year, hit by sanitary restrictions. .
But in July of this year, the withdrawal of the monetary stimulus began, which accelerated at the last meeting in mid-October, bringing the interest rate to 2.75%, well above expectations, given an overheating of the economy and advance of the inflation.
Reference-www.eleconomista.com.mx