VZCZCXYZ0000
RR RUEHWEB
DE RUEHQT #0815 2472140
ZNR UUUUU ZZH
R 032140Z SEP 08
FM AMEMBASSY QUITO
TO RUEHC/SECSTATE WASHDC 9320
INFO RUEHBO/AMEMBASSY BOGOTA 7717
RUEHCV/AMEMBASSY CARACAS 3158
RUEHLP/AMEMBASSY LA PAZ SEP LIMA 2776
RUEHGL/AMCONSUL GUAYAQUIL 3769
UNCLAS QUITO 000815
SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: EFIN ECON PGOV EC
SUBJECT: Ecuador Lowers Interest Rate Ceilings
Reftel: 07 Quito 1655
1. (SBU) Summary. Empowered by a slightly modified year-old banking l
2. (U) EcuadorQs banking law entered into force in July 2007, establis
3. (SBU) In December, the Constitutional Court declared the methodolog
4. (U) Following are the maximum interest rates for different market
Month January 2008 August 2008
Commercial 11.81 9.66
Personal consumption 21.19 17.26
Housing 13.55 11.66
Microcredit 27.98 25.50
Subsistence microcredit 39.98 35.20
5. (SBU) According to Cesar Robalino, President of the Ecuadorian Banke
6. (SBU) Comment: President Correa took office determined to push dow
7. (SBU) Comment, continued. Ironically, a second objective of the Co
HODGES