President Ivan Duque and the opposition fiercely criticized Colombia’s banks over their alleged lack of cooperation to help the country through the coronavirus pandemic.
Both the central bank and the Duque administration pumped emergency funds into the financial system last month, totaling $120 billion according to the opposition.
The president explicitly asked the banks for “solidarity” and made their stringent credit regulations more flexible to help the country’s small and medium-sized businesses through the crisis.
Duque calls on banks’ ‘solidarity’ to help save Colombia’s economy
“Vampires”
Congress and Duque were said to be indignant after Conservative Party Senator David Barguil on Tuesday revealed that while the central bank slashed their interest rate, banks increased theirs by more than 6%.
Senator David Barguil
“This is nothing but abuse,” said Barguil.
The director of bankers’ association Asobancaria, Santiago Castro, denied the accusations the banks were taking advantage of the crisis.
Banking representative Santiago Castro
Duque told radio station La FM he would ask the Superintendency for Finance to take action against the “vampires” in the financial system.
Finance Superintendent Jorge Castaño told newspaper El Tiempo on Wednesday he saw no reason to do so.
Finance minister facing third motion of no confidence
Opposition Senator Gustavo Petro urged congress to put its money where its mouth is and file a third motion of no confidence against Finance Minister Alberto Carrasquilla, who had negotiated the government’s financial injection into the financial system.
Senator Gustavo Petro
Anything but forcing the controversial minister to resign is “nothing but rhetoric,” said Petro.