Peru proposes removing interest rate cap on loans, sparking financial inclusion debate

Peru's government, led by Keiko Fujimori, proposes eliminating the interest rate cap set by Law 31143 for certain loans. The central bank (BCRP) and banking regulator (SBS) warn the cap has hurt financial inclusion, while the Ombudsman's Office cautions that removal could expose borrowers to excessive rates. The outcome is uncertain and hinges on legislative approval.