Nicaragua Approves Secured Transactions Law

The law passed by the Legislature allows companies to use their personal property as collateral to take out productive loans.

Thursday, October 6, 2016

From a statement issued by the National Assembly of Nicaragua:

During the plenary session on October 5, the National Assembly approved in general the Secured Transactions Law, a legal instrument to promote access to credit for micro, small and medium enterprises by putting up any movable goods used in their daily work as collateral.

Deputy Wálmaro Gutiérrez, President of the Commission of Production, Economy and Budget explained: "With this law, the aim is for movable goods which are used for example for production to be able to be pledged as collateral and to be 
registered, which allows for a loan to be obtained that ordinarily would not be granted".

Meanwhile deputy Lizbet Castellón of the PLI Alliance Caucus said the law has a social function by creating conditions for this business sector and making it creditworthy and she also added that it will foster job creation and increase the country's productivity.

"This law will democratize credit, ie; small and medium businesses will have access to loans at banks and microfinance organisations now that the legal conditions have been established for offering a series of moveable goods as collateral in order to obtain loads," said deputy Castellón.



More on this topic

Guarantees and SMEs

February 2018

The new law on security interests promises small and medium-sized companies quick access to credit lines, as it simplifies procedures for constituting and executing guarantees.

Last week the Congress of the Republic, approved amendments to the Law on Secured Transactions that has existed since 2007 to facilitate access to bank loans. With the modifications, any transaction that has the effect of guaranteeing an obligation of the debtor with the creditor is typified as a security interest.   

Guarantees for Loans

February 2018

In Guatemala, companies will now have the option of accessing financing using their inventory, agricultural products, machinery, equipment and other assets as collateral.

The Congress of the Republic approved the reforms to Decree 51-2007, on the Law on Secured Transactions, which aims to regulate security interests in loans, non-monetary obligations, credit titles and titles representing merchandise, among other things. The changes will take effect one month after they are published in the newspaper Diario de Centroamérica.  

Intangible Assets Used to Secure Bank Loans

September 2014

In Costa Rica the Secured Transactions Law which authorizes the use of intellectual property as collateral for loans will take effect in May 2015.

In an opinion piece published in Elfinancierocr.com, attorney Gabriela Miranda explains that in addition to allowing the use of movable property such as agricultural machinery and crops, the law has a broader scope, "...

Honduras Requires Bank Guarantees for Exports

May 2013

Those who export goods from Honduras will have to submit a bank guarantee to secure the full amount of duties and suspended taxes.

This measure applies to those companies operating under the temporary import regime (RIT). According to Article 4 of the Law on Temporary Import Regime, "in order to ensure compliance with the acts specified in this Decree and its regulations, the beneficiary must submit and maintain in effect for each import a bank guarantee in favor of the Executive Revenue to account for the amount of total suspended duties and taxes. "

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