Mexico Rule Changes May Cut Citigroup, BBVA Rates (Update1)

[bemildred]

Dec. 9 (Bloomberg) -- Mexico is requiring Citigroup Inc., the world's biggest bank, and Banco Bilbao Vizcaya Argentaria SA to allow competitors into a credit-card payment system and reduce loan rates from as high as 40 percent.

Central bank rules that take effect in January oblige Citigroup and BBVA, which control three-quarters of the $6.9 billion market, to share the 30-year-old system with lenders such as Santander Central Hispano SA. That would enable customers to transfer balances to credit cards issued by other banks, a common practice in the U.S. for more than a decade.

Mexican central bankers are pressing lenders to cut credit card rates that are triple the U.S. average. Expanding use of credit by Mexican shoppers would help sustain growth in Latin America's biggest economy, said Bank of Mexico Deputy Governor Jesus Marcos Yacaman.

``By facilitating competition, eventually we'll see a decline in interest rates as a result,'' said Marcos, 61, in a Nov. 15 interview in Mexico City. ``One should be able to use the cheap credit cards to settle the expensive ones.''


Bloomberg

[Melodybe]

1. Citigroup also owned by the Saudis

[purduejake]

2. Good...

I have my largest account with them... and after loosing my job and not being able to find work, I am renegotiating what I owe down to about 50% of the principle, plus no more interest. They like that better than bankruptcy. I don't recommend people do this without a choice, but it just gives me satisfaction in doing my part =)