Financial System: Warning by Bill

In the Honduran Congress there is a bill that seeks to prohibit banks and finance companies from capitalizing interest on payments not made from March 2020 to December 2021, a measure that worries the sector.

Friday, October 9, 2020

The initiative was sent by the Executive to the National Congress months ago. The purpose of the bill, which is called "Financial Plan of Solidarity Rescue", is to benefit people and companies that were affected by the spread of covid-19, with the payment of their debts.

At the end of August, President Juan Orlando Hernández, through an official statement, urged the National Congress to approve the bill as soon as possible.

See "Financial Services: Business Potential in Central America"

The initiative in the hands of the Legislative prohibits banks and financial institutions from capitalizing interest on payments not made from March 2020 to December 2021. For this same period, it also prevents the application of moratorium charges, for services or any other additional cost to the interest rate, including that of credit cards.

Laprensa.hn reviews that "... the proposal establishes maximum monthly rates of 2% for credit cards and 1% for loans granted by financial institutions (lowering the average rate from 30% to 12% per year), according to a presentation made by the Secretariat of State of the Presidency."

The article adds that "... economists and businessmen consider that the project would be going against the market economy and ask for prudence to avoid a systemic risk and urge to watch over the stability of the financial system, since the money they handle belongs to all savers."

Do you need to understand the current business reality in the financial sector? Contact Us








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Banks Would Be Forced to Consolidate Debt

April 2020

In Panama, the Assembly approved in third debate a bill that seeks to force banks to consolidate customers' debts, regardless of their credit history.

According to Article 4 of the approved law, "... all credit obligations that the debtor has, regardless of the risk category or default status that these obligations register in the credit history of the interested party, are subject to debt consolidation."

Loans in Panama: 90-day Moratorium

April 2020

In the third debate, the National Assembly approved a bill that grants debtors a 90-day extension of time for payment of credits granted by banking, cooperative and financial institutions.

According to the law that must be sanctioned or banned by President Cortizo, once the term of the moratorium set forth in this law has expired, creditors, in common agreement with the debtor, must agree on the conditions for the unpaid debt to be prorated, to be paid within 24 months.

Panama: Proposal to Regulate Credit Cards

January 2020

A bill has been submitted to the National Assembly proposing to prohibit the practice of advance discounts for late payments.

The document also provides that banks agree to enter into a payment arrangement with the debtor when the customer is more than 90 days late in paying the loan.

Panama: Plan to Modernize the Financial System

April 2018

The bill put forward by the Varela administration proposes regulating the operation of crowdfunding platforms, and creates the concept of Family Offices of Patrimonial Administration.

From a statement issued by the Ministry of Finance:

The Cabinet Council approved on Tuesday the Bill for the Modernization of the International Financial System of Panama, which seeks to introduce new solutions and services to strengthen supply and increase the competitiveness of Panama as a financial services platform. 

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Tailor made software for construction companies

O4Bi is a system that allows to control and manage what a company needs: the complete process of development of works, accounts receivable, treasury, banks, sales and accounting.
O4Bi is a very robust system that allows to control and...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Nov 26)
Brent Crude Oil
47.77
Coffee "C"
117.15
Gold
1,812
Silver
23.355