Published On: Mon, May 13th, 2013

Loan Sharks need to be restricted

Central BankWILLEMSTAD – Illegal lenders with exorbitant interest rates should be restricted. The Political Patry PAIS wants the Central Bank of Curaçao and Sint Maarten and the Public Prosecution to be more active in the fight against these so called ‘loan sharks’.

According to the Central Bank, the supervision of these lenders is currently not regulated by the banking law. There is since 2004 a regulation on the provision of information to the public. Also, the Central Bank issued a draft guideline designed to prevent these type of credit. This guideline will be presented shortly.

The Central Bank can actually act against these lenders. Currently there is an investigation into illegal lenders and if necessary the Central Bank will file a complaint with the Public Prosecution. Also, loans with an interest rate of 18 percent per year is regarded as unreasonable and will be prohibited based on that conclusion.

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