Mutuals in Costa Rica are now able to raise capital  

A law has been approved to modernize sources of capital for mutuals, allowing the collection of third-party investments.

Thursday, December 12, 2013

Until now far mutuals could only turn to the accumulation of profits in order to have capital formation.

The Act to modernize sources of capitalization for mutuals establishes that these entities may obtain financing through mutual participation fees, this mechanism will allow them to capture third-party resources who have no control over the mutuals, only economic rights.

Mutuals may issue registered shares or participation shares for an amount of up to 50 % of their total assets . " ... Those shares will have the same characteristics of the values ​​according to the Commercial Code and the Law Regulating the Market and will not have the state guarantee or collateral with the Banco Hipotecario de la Vivienda( Banhvi)" reported Nacion.com.

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