Central Bank prolongs credit freeze

POSTED: 11/25/12 8:36 PM

St. Maarten – The credit freeze, effective during the period March – August 2012 to address the persistent high deficit on the current account of the balance of payments and the declining international reserves has started to produce the intended results.

Both private sector credit growth and the decline in reserves have moderated. Nevertheless, the deficit on the current account of the balance of payments is still significant and the international reserves are still considerably below the level of a year earlier. The current monetary situation warrants a prolongation of the credit restriction with a slight adaptation. The Central Bank will allow a maximum growth of domestic private credit extension of 1.00% measured from the outstanding amount on August 31, 2012 for a period of six months. The exemptions introduced in Monetary Circular 2012-02 will remain in effect.

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