USA Today quotes CGD senior fellow Liliana Rojas-Suarez on escalating credit-card interest rate in Mexico.
From the article:
"MEXICO CITY — The Wal-Mart slogan in Mexico is the same as in the USA: Always low prices. Yet that doesn't apply to the store's credit cards, which carry a 69.6% annual interest rate.
Such high rates are increasingly common in Mexico, and they are rising even further as banks worldwide tighten lending limits amid a worsening economic crisis.
Some economists are worried it could send millions of Mexicans spinning into a cycle of debt, a situation that could hurt the United States, Mexico's largest trading partner.
'There is definitely a risk because you're combining high interest rates with lower income,' said Liliana Rojas-Suarez, an economist at the Center for Global Development in Washington."
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