Colombian banks rule out local liquidity problems
The issuing bank has announced in total additional liquidity between permanent and transitory trading in local currency for about US $ 7,749 million
This Wednesday the manager of the Bank of the Republic of Colombia, Juan José Echavarría, indicated that in the South American country they ruled out local liquidity problems in the next two months due to the supply of resources released by the Central Bank in order to meet the needs of the country in the midst of the health current crisis.
“Last week we had three meetings with 25 banks, they showed good liquidity at the moment and they definitely think that at least for the next two months they will not have any problem,” Echavarría said in a virtual press conference.
The executive announced that the new measures released by the Central Bank have been sufficient and have been taken as a prevention to guarantee that financial intermediaries “do not see an imminent liquidity problem, rather deposits in banks, especially in the big banks where they have increased and also big banks which have brought money to the Central Bank in anticipation of the future.”
And although the new action plan is very satisfactory for banks, small and medium-sized merchants do not think the same, because they allege that the credit lines have not materialized due to the risk analysis implemented by the banks.
“The banks would like to have more guarantees from the Government and I believe that this is the discussion that is coming between the government, banks and small companies … Of course we are going to have problems, there is very strong uncertainty, the Banco de la República has taken measures that tend to diminish that uncertainty and we will be monitoring them”.
K.Villarroel
Source: americaeconomia
