President Chinchilla criticizes gasoline prices, interest rates

President Laura Chinchilla (archive photo)

October 28^th, 2012 (InsideCostaRica.com) – Costa Rica’s President, Laura Chinchilla criticized high gasoline prices and the long process and paperwork that is necessary every time a reduction in gas price is required, and also stated that there is no reason whatsoever for the basic interest rate (similar to the Prime Rate in the United States) to be so high, during a press conference on Thursday.

“There are absurd routines in Costa Rica that do not help in solving the main concerns of the Costa Rican people,” said the President, referring to the process that must occur every time gasoline prices are raised or lowered.

“The constitutional court requires that before making any change in prices, public consultations must take place, which means ten more working days, and on top of this, explanations must be added to each consultation, as well as the objections to these responses. This is finally revised and published. The whole process takes at least one month,” Chinchilla explained.

Speaking of the basic interest rate, Chinchilla added, “The interest rate has increased by almost 2 percentage points so far this year, and there is no rational manner to explain this, if we analyze all the variables that participate in the rate.”

Chinchilla said that the government’s debt could not be used as an excuse for such a high interest rate, as it had remained practically the same during the same period.

Chinchilla criticized the banks’ attitude, saying those who are most affected are those already in debt, who must spend more of their income on servicing their debt every time the rate increases. She was also emphatic in noting that with the approval of the Eurobonds, the rate was expected to decrease.

Chinchilla said the government has made efforts to improve the country’s economy, and to not allow financial obligations in the public sector to increase.

Chinchilla said that various changes to the law that dictates the process for raising and lowering gas prices would be announced on Tuesday, allowing the government to adjust prices more quickly.