tag:blogger.com,1999:blog-1877750525098777484.post4460052484051042720..comments2010-05-30T04:20:12.319-07:00Comments on Libertarium: O kírios tha plirósi giá ólaFelipehttp://www.blogger.com/profile/15318028192336484772noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-1877750525098777484.post-3258290917004984812010-03-11T09:36:33.546-08:002010-03-11T09:36:33.546-08:00I am unaware of the law in Nicaragua as well. Howe...I am unaware of the law in Nicaragua as well. However, the article hints the law in the making is a good law that would help individuals with a bad credit profile to renegotiate its loans. <br />My thinking is that if there isn't any law regulating the sector, then no law is needed. Now, if within the current framework in Nicaragua there are restrictions on the loans renegotiations, I suppose a law allowing for it is better. <br /><br />It makes business sense to renegotiate lower interest rates given they were practically considered a lost investment since day 1. It might send perverse incentives in the sense that people might want to default in their loans to gain access to lower interest rates.<br /><br />Indeed, it is Hernando de Soto who claims that Latin American countries do not lack capital, but more effective ways to gain access to the ones they already have but can't yet materialize. <br /><br />Certainly, it does not help having government messing around with private legal procedures...!Susette Españahttps://www.blogger.com/profile/11906270994233579255noreply@blogger.com