A subordinated loan to Banco de Costa Rica is the first use of Tier 2 capital by the country’s dominant public banking sector. However lawyers have called for more guidance from the industry’s regulator on how the instrument can be used within public banks’ capital structure.
The $30 million facility from Inter-American Investment Corporation (IIC) on March 13 took advantage of a December 2010 legislative amendment which allowed the country’s public commercial banks’ subordinated loans to be recognised as...
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