The Senate passed the Bill of Guarantees for Movable Property (Ley de Garantías Mobiliarias). The bill establishes a new legal framework for asset guarantees for bank borrowing in the country. The bill has provisions to facilitate business for entrepreneurs and small and medium-sized business. It authorizes the creation of an electronic and automated registry in real time of businesses. This will guarantee transparency in the market and banks will be able to check if a client has already placed a movable asset as guarantee in another financial institution.
The system will make it possible for machinery, equipment and even accounts receivable to be used as collateral by small and medium-sized businesses, serving as a boost to credit for these companies. The bill was drafted with the collaboration of the Ministry of Economy and the Ministry of Industry and Commerce and sent to Congress via the Executive Branch.
The bill had already passed in the Chamber of Deputies and now passes to the Executive Branch for signing into law.
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Listin Diario
El Caribe
11 February 2020