El-Watan

Promoting Democracy in Algeria

CPC Right

In fact, as he has established Juan Carlos Ruiz Morella, Although the disciplinary sanction was a valid option even though he were " desmentida" , she was obviously untimely, because it did not affect the judicial resolution that it had failed to fulfill and disobeyed the binding precedent of the TC, since that one maintained its effects. That is to say, this way was not most suitable and effective to assure fulfillment of the binding precedents of the TC. Another possibility would have been the presentation of a constitutional process of shelter against the resolution that does not know the binding precedent, alleging, among other things, the violation of the right to the equality, because it is not possible that justice is pronounced of different way – if that it is not opposed before two facts or materially identical situations fundamental and. If you are unsure how to proceed, check out Robert Iger . Another foundation of this possible " shelter against amparo" it would have been the violation of the right to the effective judicial trusteeship, in particular of the right of the actionable one to that the judge pronounces itself on the bottom and in agreement with the right, because the binding precedent, by virtue of article VII the CPC, is source of right and part of the legal ordering which all are put under, magistrates including. Although attractive, this answer had several problems; the main one, the time: a shelter process delays, in the best one of the cases, two years in being transacted, turned which it into a little effective instrument to assure the respect the precedent. On the other hand, a to weigh to have outlined, the importance and the mediatic effects of the binding precedents, in certain Peru sector has questioned the faculties of the Constitutional Court to assume faculties of positive legislator, by virtue of which the principle of separation of powers consecrated in the article would be being been violating 43 of the Political Constitution of the State, invading itself and being affected legislative faculties of the Congress of the Republic prescribed in Article 102 of the norm normarum, especially if this one last one does not give cover to the binding precedents.

Central Bank

According to the survey, 60% of banks surveyed revealed that they have imposed greater restrictions for granting loans to large companies (85.7% had been recognized in the survey of the previous quarter), while 44% did so for small and medium-sized enterprises (73.7% in the previous quarter). Several entities have also increased their requirements for the granting of personal and mortgage loans (29.4% have done so for the first and 18% for the latter). As you can be seen, the credit market in Chile feels the impact of the crisis by the supply side. But also feel it by the demand side. It is an economic overview in continuous deterioration and higher requirements have caused a contraction of demand for credit. According to the survey of the Bank Central Chile, 47.1% of the entities noted a fall in demand for personal loans, 35.3% sees it in mortgage loans. As regards the credit to companies, 30% of the entities detected a fall in demand in the segment of large enterprises, while 22.2% has been observed in the small and medium-sized business.

If the cost of funding of banks in Chile has declined strongly so far this year: why banks are less willing to provide? Simply by the deterioration of the internal as well as external economic context which increases credit risk and requires banks to keep more liquid to avoid stressful situations (which can cause such large volumes of deposits output). What happens in the credit market of Chile is a normal behavior that occurs in situations where there is an increase of macroeconomic volatility. In situations of economic stress, authorities corrected their Diagnostics of risks and seek more conservative positions. Therefore they shorten deadlines and reduce the amounts granted. In addition, and despite the fact that the Central Bank of Chile has heavily cut its interest rate of reference (rate that results from reference to the rest of the interest rates), the Chilean banking entities have increased their spreads. This behavior corresponds by the increase in the risk premium that they perceive.

If the actions of the Central Bank of Chile are not achieving the proposed objectives: one can speak of mistakes in the conduct of monetary policy? One may think that the little effectiveness which is having the Central Bank of Chile in its objectives (towards mid-2008 he was incapable of controlling inflation and currently can not do too much to stimulate the economy), are due to errors in the conduct of monetary policy. However, what is happening is that the tool with which the Central Bank of Chile, is worth is not having the desired effects because in situations of crisis like the present, multiple factors influence negatively on the loan offer. In this sense, so that monetary policy effectively encourage domestic demand, it should be complemented with direct measures that stimulate the generation of credit. In this sense, towards the end of March, the Chilean President Michelle Bachelet announced further measures of economic stimulus including the mentioned facilities for accessing Bank financing (including measures to encourage mortgage lending) and measures aimed at increasing competition in the sector (where provided for increasing the capacity of insurance companies, which may provide more resources to the private sector). These actions to act directly on the credit market, together with others that seek to increase the competitiveness of Chilean companies, complement the effectiveness of monetary policy in Chile, in the short term at the time that in the medium and long term, strengthen the economy. They have these measures the expected immediate impact?