The BCIE has granted an additional $3 million to Desyfin's global credit line, meaning that the total amount it now has reaches $10 million.
With this money Desyfin will finance "programs to support micro, small and medium enterprises, financial intermediation programs for social housing, the housing and urban improvement program, and factoring products for suppliers," explains Nacion.com.
The bureaucratic requirements contained in a bill advancing in Congress would continue to hamper access to credit for entrepreneurs.
A few days ago Congress ruled on the Law for Strengthening Development Banking, under which sureties are not required, interest would be low and deadlines for payment would be longer. However, among other things, entrepreneurs who wish to take out a loan would be required to take a training course at the National Training Institute (INA by its initials in Spanish) in order to get a certificate which would allow them to make the appropriate application.
The definition of the conditions and requirements for customers will be the responsibility of each entity, as determined in its policies and risk analysis.
The National Council of Financial System Supervision (CONASSIF) approved from Tuesday, 15 to 10 changes to the standard established by the Superintendent of Financial Institutions (SUGEF) under the Regulation for qualifying borrowers with resources granted by the Banking System Development Act 8634, which states: "It is the responsibility of the Board of Directors or equivalent governing body of each financial institution, to approve the policies, processes and controls which will be used to identify, measure and manage the risks associated with credit operations, and resources granted by the Banking System Development Act 8634 ".
The idea that the Central Bank of Costa Rica be a fund manager for the Development Bank has been rejected by its President Rodrigo Bolaños.
An article in Nacion.com notes that the strange idea originated in the office of the second vice president of Costa Rica, Luis Liberman, where it probably passed by the Economy Minister Mayi Antillon, who most likely presented it at the Development Bank Commission of the Legislature.
In Costa Rica there are 45 credit programs for SMEs, which in the first six months of 2012 placed $582 million, 66% of which were for the services and trade sectors.
A statement from the Ministry of Economy, Industry and Commerce (MEIC) reads:
Financial institutions placed 242,757,000 colones ($582 million) in loans to SMEs during the first half of 2012
In the first half of 2012 the volume of loans to micro, small and medium enterprises reached ¢243,000 million ($485 million) in the first half of 2012.
The figure represents an increase of just 1.36% compared to the same period in 2011, lower than the inflation rate, and 39% of the projections of the Ministry of Economy, Industry and Trade for all of 2012.
The National Bank has $14 million from the System for Development Banking for small industrialists who have a capacity to pay, good credit and a clear plan of investment.
A statement from the Chamber of Industries of Costa Rica (ICRC) reads:
- Small Industries will have 7 billion colones for funding to improve productivity
- System for Development Banking will provide financial resources for the program.
CoreCo Central America Fund is a $54 million private investment fund, which aims to invest in SMEs in Central America that have potential for growth, stimulating the expansion of industry.
Although not limited by sector, investments are primarily aimed at companies in the following sectors: healthcare, financial services, computer / software, consumer goods, retail, logistics business and telecommunications.
For micro-enterprises, who usually do not have assets to offer as collateral, good payment history is the best asset in order to access credit.
In an article in Siglo21.com Francisco Madrid, general manager of Finsol, says "’If we are talking about small businesses and their difficulties in getting loans, from the standpoint of traditional banks we will find that their main difficulties are that they lack financial reports and do not having formal guarantees to support any loans. "
Three years after the entry into operation of the Development Bank, the percentage of MSMEs accessing credit as companies has barely increased.
In Costa Rica, the sector of Small and Medium Enterprises still faces serious problems with financing, so that 57% of these companies are financed from their own resources.
The situation persists despite the fact that three years ago the Banking System for Development (SBD) began operating.
Changes to the law on development banking have suffered a delay of 5 months, which has prevented the use of $320 million.
Delays to the expected legislative changes to the Law of the System for Banking Development (SBD) now add up to 5 months.
The opposition blames the government for not having pushed a review of the reforms to a special commission. In those five months, the government moved the agenda because they were special sessions, opposition deputies say. However, the Minister of Economy, Industry and Commerce (MEIC) and chair of the governing council of the SBD, Mayi Antillon, said the government left room in Congress for discussion and analysis of the viability of the Solidarity Tax Project .
Increased credit is available for mini, small and medium enterprises in the Banco Popular and Banco Nacional in Costa Rica, bringing the amount available to $740 million.
Banco Nacional now has ¢ 250,000 million ($493.66 million) for the productive sector, 50,000 million colones ($98.7 million) more than in 2011, said Victor Eduardo Acosta, director of the entity’s Development Bank.
In Costa Rica an agreement between the Chamber of Commerce and the National Stock Exchange facilitates the capitalization of SMEs through the Alternative Market for Shares.
"The Market for Alternative Shares (MAPA in Spanish) is a platform for SMEs with high growth potential to become professional, and to raise capital through the private sale of shares.