Travieso Evans Arria Rengel & Paz

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Interest rates for credit transactions intended for the manufacturing sector

 The Venezuelan Central Bank (“VCB”) issued Resolution No. 17-05-02 dated May 25, 2017 (the “Resolution”), published in Official Gazette No. 41.158 of May 25, 2017. The Resolution establishes the following:

 

  1. The universal banks, as well as the commercial banks in the process of transformation before the Superintendence of the Institutions of the Banking Sector, may not: (i) charge an annual interest rate in excess of eighteen percent (18%) for the credit transactions intended for the manufacturing sector by reason of such activity; (ii) charge an annual interest rate in excess of ninety percent (90%) of the interest rate indicated in letter (i) for the credit transactions intended for Small and Medium-Sized Industries, Enterprises of Indirect Social Ownership, and Joint Enterprises, by reason of the manufacturing activity.

  2.  The bank institutions referred to in the Resolution must send to the VCB periodic information about the interest rates agreed in the relevant financing agreements, in the terms and at the time indicated by the VCB.

  3. Failure to comply with the provisions of the Resolution will be penalized in accordance with articles 22, number 2) and 23 of the Law of Credit for the Manufacturing Sector and articles 133 and 135 of the Decree-Law that governs the operation of the VCB.  

  4. Resolution No. 13-07-03 of July 30, 2013, published in Official Gazette No. 40.217 of July 30, 2013 was repealed.

 

The Resolution will become effective on the day following that of its publication in the Official Gazette.

 

In order to access the Resolution, please click here.

 

“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”