Byron Dardón in his article for La Prensa Libre interviewed Cesar Stump, director of the Rural Development Cooperation of the West and an analyst from the Association of Social Economic Research (ASIES), Carlos Gonzalez.
An extract from the interview with Caesar Stump where he referred to the new draft as "restrictive legislation" follows.
"What do you think of the proposal to regulate the microfinance sector in the country?
The Superintendency of Banks has not seen the impact that microfinancing activities have had in the country, seeing as they have now been running for over 35 years. This not only refers to the financial education of small producers and small businessman, but also the role that these have had on their communities.
At no time are we talking about providing a boost –to the sector – instead it is merely generating small "mini-banks" It is a restrictive legislation.
If you look at the Law on Banks and Financial Groups, instead of $ 12 million or $ 15 million, an MFI will have to have a minimum capital of $5 million in order to be officially established. "
According to Carlos Gonzalez "we need to regulate them."
Source: prensalibre.com
More on this topic
October 2011
New regulations, issued by the Guatemalan Superintendency of Banks, regulate the establishment, merger, operation, suspension and liquidation of Microfinancing companies.
The bill establishes a minimum capital for the start of operations of $2.5 million for credit and investment microfinancers and $5 million for credit unions.
September 2010
By October it is anticipated that the law will be approved after seven years in the National Assembly.
Freddy Torres, member of the National Assembly's economy committee, indicated that progress had been made, adding that they are awaiting a final review by a Peruvian microfinance expert before sending it for approval by the Assembly.
May 2012
New legislation is being prepared in Guatemala, which will require recipients of micro credits to receive training on how to use such resources.
The Superintendent of Banks in Guatemala, Victor Mancilla, said "we wouldn’t give money to entrepreneurs without them having first received training on how to manage their business", said Siglo21.com.gt.
June 2011
The Alba Caruna cooperative may continue to operate as second-tier bank with microfinancers beyond regulation of the new law.
The exclusion was requested after taking into account that the cooperative not only provides loans to its members but also to third parties.
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