Salvadoran Banks Warn of Fewer $1.000 Credit Cards

©image: Colin

The Salvadoran Banking Association, known as ABANSA, warned of fewer supply of credit cards with less than $1.000 limit, if the credit card law proposal being studied is approved. With the 22% maximum interest rate, according to them, banks would not be able to cover the costs of providing this service for small amounts, as operative and irrecoverable costs increase significantly in this market segment.

ABANSA studies indicate that in the $500 or less segment, funding, operations and delinquency costs can reach up to 60%.

Source: laprensagrafica.com

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