Loans granted by Venezuela’s financial institutions will be measured and expressed in the Credit Value Unit (UVC), which results from dividing the amount in bolivars of the loan by the Investment Index (IDI) in force for that date, taking the foreign exchange reference rate published daily by the Venezuelan Central Bank (BCV), ruled the monetary authority.
For these purposes, the resolution states that banks must charge their clients a maximum annual interest rate of 10 percent and a minimum of four percent for commercial and micro loans in national currency, expressed in Credit Value Units (UVC).
Likewise, the loans granted for the Single National Productive Portfolio will have an annual interest rate of two percent on the balance resulting from its measurement in Credit Value Units (UVC).
BCV clarified that loans aimed at employees and managers of banking entities are excluded, to whom applies a maximum annual interest rate equivalent to 90 percent of the current rate for active operations related to credit cards, published monthly by the Central Bank of Venezuela.
On loans granted through credit cards equal to or greater than 20,400 Credit Value Units (UVC), the annual interest rate may not be less than 10 percent.
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The resolution excludes commercial loans in installments granted to individuals for payroll loans and other consumer loans granted with credit cards, whose limits or amounts are less than 20,400 Credit Value Units (UVC).
However, it clarified that banks must charge their clients an annual interest rate that may not exceed the current one for active operations related to credit cards, published monthly by the Central Bank of Venezuela.
In addition, the measure fixes at twelve percent the annual interest rate to be applied by the Central Bank of Venezuela in its discount, rediscount and advance operations, through which the BCV grants loans to banks.
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Translation: OT/JRE/SL
