President Danilo Medina enacted Law 45-20 on Movable Guarantees, that establishes a “clear and efficient” legal framework for a guarantee system as a tool to access and expand credit for micro and Small and Medium-Sized Enterprises (SMEs).
“With this law, we are benefiting thousands of people and MSMEs, which will be able to apply for credit in banks without the need to mortgage real estate or have joint guarantors to back them up, since around 78% of the assets that MSMEs have are usually machinery, raw materials or accounts receivable, which this law now admits as assets accepted by the financial system,” said Presidency Minister Gustavo Montalvo upon announcing the signing into law of the bill.
He explained that the companies will now be able to access credit at better conditions in terms of interest rates and terms.
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Z101 Digital
N Digital
19 February 2020