The Chamber of Deputies has approved the second reading on the bill that establishes a new legal framework for asset guarantees for bank borrowing in the country.
Rafael Paz, director of the National Competitiveness Council, stressed the importance of the Bill of Guarantees for Movable Property (Ley de Garantías Mobiliarias) for entrepreneurs and small and medium-sized business. The bill 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.
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Diario Libre
Competividad
27 January 2020