[ad_1]
 |
| Kim Tae-nyeon, along with the internal representative of the Democratic Party. © News1 Reporter Park Se-yeon |
On the 16th, the party government entered into discussions to derive a plan to cut the maximum legal interest rate.
We decided to reduce the current 24% per year to around 20% per year. The 20% per annum is also President Moon Jae-in’s presidential election promise. The decision is expected to be at the 20% level, taking into account side effects such as the basement of loan companies. On this day, when a final agreement is reached between the parties, the relevant ministries will announce the cut.
“The Bank of Korea’s standard interest rate is 0.5%. With interest rates that low, it is anachronistic to set the highest interest rate at 24%,” said Kim Tae-nyeon, Chairman of the Democratic Party, at a political party consultation held in the Assembly Hall of the National Assembly this morning. “I’m going to drift,” he said.
“It is necessary to reduce the interest burden of ordinary people by lowering the legal maximum interest rate,” said Won Nae Kim. “As a national task of the Moon Jae-in administration, we selected a gradual cut of the highest interest rate to 20% and cut it to 24% in 2018. Even at the XXI National Assembly, several members of our party have proposed a bill to lower the legal maximum interest rate “.
Also, “Corona 19 (new coronavirus infection), etc. Ordinary people and the vulnerable still suffer from high interest rates,” he said. “As of June this year, the scale of credit lending over 20% was estimated to be over 15 trillion won.” Said. He added: “The damage caused by illegal private finance continued, and there were a whopping 63,900 reports of damage to illegal loans in the first half of this year alone,” he said. “The party government will focus more on strengthening the financial safety net for ordinary people and the vulnerable.”
Han Jeong-ae, chairman of the Party Policy Committee, said: “As our economy matures after a period of high growth, the growth rate and the growth rate of nominal income are gradually declining. In this situation, it is difficult for anyone to bear high interest rates above 20% and maintain economic life. “He expressed the need for a cut.
However, “on the one hand, it is true that there is a side effect of increasing the number of people who can no longer use loans, since finance companies see more difficult credit scores if the maximum interest rate is reduced.” It was a place to discuss ways to minimize risk elimination side effects. ”
Finance Commissioner Eun Seong-soo said: “There has been a lot of pain because the higher interest rate cut can eliminate the loan opportunity itself,” he said. “However, it is time to cut the highest interest rate.”
President Eun said: “For loans that are frequently used by low-credit ordinary people, the statutory maximum interest rate is collectively applied regardless of actual repayment capacity, so it cannot be lowered without reducing the maximum legal rate “.
He added: “We will thoroughly review the level and method of the cut so that the good side of the maximum rate cut can be maximized and the bad side can be minimized,” he said. “There is still uncertainty due to Corona 19, and there are limitations to simulating the situation in the future, but we will discuss it today. I will constantly prepare for success.”
For the discussions, the representative of the Party House of Representatives, Tae-Neon Kim, the Chairman Han Jeong-ae of the Policy Committee, Ho-jung Yoon, the Chairman of the Legal Justice Committee, Kwan-Seok Yoon, the Vice Chairman Policy Committee Senior Dong-Soo Lee, Senior Vice President Kim Young-jin, First Speaker of the House Jeongjo Han Byeong-do, the 3rd. , Tae-ho Jung, chairman of the Strategic Planning Committee, and Seung-rae Cho, senior vice president of the hospital attended the event.
Present at the government were Eun Seong-soo, Chairman of the Financial Services Commission, and Koki-young, Deputy Minister of Justice.
Meanwhile, when the governor of Gyeonggi Gyeonggi, Lee Jae-myung, argued that the legal cut of the maximum interest rate in August, the governor of Gyeonggi province, Lee Jae-myung, sent a letter to the Party delegation Democrat and all members of the legislators who advocated reducing the maximum rate to 10% per year.
[ad_2]
