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LatinNews Daily - 12 March 2021

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In brief: Peru’s congress approves bill capping interest rates

* Peru’s congress has approved an initiative that will allow Peru’s central bank (BCRP) to set maximum and minimum interest rates every six months in order to regulate the loan market. The bill (5205) was first approved on 30 December, but the executive refused to promulgate it, sending it back with observations. While legislators maintain it is necessary in order to protect Peruvians from exploitative lending practices, the government warns that people will be forced to resort to the informal lending sector with potentially more damaging lending rates and practices. The bill was approved yesterday by 85 votes in favour, eight against and 12 abstentions.