With the publication of Law 32183, approved by the Congress of the Republic and that modifies the Penal Code to include extortionate loans, known as “gota a gota” credits, within the crime of extortion, seeking to stop a form of informal financing that has grown significantly in the country.
In this new rule promulgated by the Executive Branch, ‘Gota a Gota’ loans were incorporated into extortion crimes with penalties of up to 25 years in effective prison, depending on the aggravating circumstances incurred.
In addition, the Legislature is evaluating the possibility of repealing the caps on interest rates associated, as experts point out, with the rise in “drop by drop.” According to Carlos Gallardo Torres, general manager of the Peruvian Institute of Economics (IPE), informal credits have increased from 22% to 35% in recent years, reaching an estimated amount of 1.8 billion soles.
According to the expert, about 50% of people who resort to this type of financing pay annualized interest rates of more than 700%.
The Central Reserve Bank, the Superintendence of Banking, Insurance and AFP, and the Ministry of Economy and Finance have expressed their support for the repeal of articles 1, 2 and 3 of the rate cap law. These institutions consider that the change would reduce informal credit, its risks and promote greater financial inclusion. According to the IPE, the interest rate caps would have affected 542 thousand clients in the three years since their implementation.
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