Draft Microfinance Bill

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.

"Institutions can be transformed into savings and credit microfinancers, if authorized by the Monetary Board, after a ruling by the SIB.

Some of its operations will be to receive savings deposits, term deposits and borrow from international financial institutions or nonprofit organizations", reported Prensalibre.com

Ther e is also a requirement to submit updates to the Banking Information Superintendency in order to maintain accurate data in the Risk Information System of the Banking Law and Financial Groups.

Source: prensalibre.com

More on this topic

Alba Caruna Exempt From New Microfinance Act

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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Criticism Over Microfinance Bill

October 2011

Analysts say that the regulations contained in the bill issued by the Guatemalan Superintendency of Banks are restrictive for the sector.

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.

Nicaragua Makes Progress with Microfinance Act

May 2011

The Law for the Promotion of microcredit proposed by the government is starting to make sense for the private sector.

For the Nicaraguan Association of Microfinance Institutions (ASOMIF), discussion of the governmental law is starting to find more points in common than differences with regards to the current needs of the sector, and is progressing well.

Nicaragua: Consensus Achieved on Law for Microcredit

June 2011

In the coming weeks, the bill which has been approved by the public and private sector will be sent to the Assembly.

The committee has already been formed (five members, two from the private sector and three from the public) which will be responsible for overseeing the microfinance sector, as stated in the bill.