The bill establishes a minimum capital for the start of operations of $2.5 million for credit and investment microfinancers and $5 million for credit unions.

"Institutions can be transformed into savings and credit microfinancers, if authorized by the Monetary Board, after a ruling by the SIB.

Some of its operations will be to receive savings deposits, term deposits and borrow from international financial institutions or nonprofit organizations", reported Prensalibre.com

Ther e is also a requirement to submit updates to the Banking Information Superintendency in order to maintain accurate data in the Risk Information System of the Banking Law and Financial Groups.

Source: prensalibre.com

More on this topic

Microfinance Act Goes to Guatemalan Congress

January 2013

New rules govern formations, mergers, functioning, operation, suspension and liquidation of microfinacers, and establish the minimum capital for start-up.

The bill, which already has the backing of the Monetary Board (MB), will be sent to Congress for approval.

"The president of Banguat, Edgar Barquin, explained that this rule has a legal framework by which companies can capture savings deposits and undertake term lending, but they must be under the guise of public limited companies with a minimum capital of $5 million (Q39 million).

Microfinance Law Becomes Effective in Nicaragua

January 2012

On January 11, 2012 the Law on Promotion and Regulation of Microfinancers comes into force.

From 2009 up to 2011 the global financial crisis and the local crisis has negatively affected the microfinance sector, which has generated successive losses.

The president of the Nicaraguan Association of Microfinance Institutions (ASOMIF) and general manager of the Foundation for Rural Social and Economic Development (Fundeser), Rene Romero expects that the new legislation will bring "stability and institutionalisation" to the microfinance sector.

Criticism Over Microfinance Bill

October 2011

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.

Alba Caruna Exempt From New Microfinance Act

June 2011

The Alba Caruna cooperative may continue to operate as second-tier bank with microfinancers beyond regulation of the new law.

The exclusion was requested after taking into account that the cooperative not only provides loans to its members but also to third parties.

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