Microfinance Act Goes to Guatemalan Congress

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

Friday, January 18, 2013

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).

The second classification is for those who are constituted as investment and credit compaines, which can only issue debt and microlending, and can establish a minimum capital of $1.5 million", reports Prensalibre.com.



More on this topic

Draft Microfinance Bill

October 2011

New regulations, issued by the Guatemalan Superintendency of Banks, regulate the establishment, merger, operation, suspension and liquidation of Microfinancing companies.

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.

Assembly Passes Microcredit Law

June 2011

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.

Nicaragua: Consensus Achieved on Law for Microcredit

June 2011

In the coming weeks, the bill which has been approved by the public and private sector will be sent to the Assembly.

The committee has already been formed (five members, two from the private sector and three from the public) which will be responsible for overseeing the microfinance sector, as stated in the bill.

Nicaragua: Micro-finance Association Law

September 2010

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.

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