Analysts say that the regulations contained in the bill issued by the Guatemalan Superintendency of Banks are restrictive for the sector.
Byron Dardón in his article for La Prensa Libre interviewed Cesar Stump, director of the Rural Development Cooperation of the West and an analyst from the Association of Social Economic Research (ASIES), Carlos Gonzalez.
The issuance of a $25 million has been frozen due to pressure from the defaulters.
A group of producers and small businesses that owe $15 million to microfinancers, called the ‘No Pago’ movement, are putting pressuring on the Association of Microfinance Institutions (ASOMIF) and the government, asking them to assume the debts and help them avoid eviction from their defaulted properties.
The Nicaraguan Assembly has passed a law on the promotion and regulation of microcredit.
According to Gutierrez Wálmaro of the association of microfinance institutions (ASOMIF) the effect of the new regulations will result in a reduction of interest rates charged by microfinancers over the next three years.
The Law for the Promotion of microcredit proposed by the government is starting to make sense for the private sector.
For the Nicaraguan Association of Microfinance Institutions (ASOMIF), discussion of the governmental law is starting to find more points in common than differences with regards to the current needs of the sector, and is progressing well.
By October it is anticipated that the law will be approved after seven years in the National Assembly.
Freddy Torres, member of the National Assembly's economy committee, indicated that progress had been made, adding that they are awaiting a final review by a Peruvian microfinance expert before sending it for approval by the Assembly.