Law for the National Solidarity Credit Program for Rural Women

CREATION OF THE NATIONAL SOLIDARITY CREDIT PROGRAM FOR RURAL WOMEN. The National Solidarity Credit Program for Rural Women is hereby created, known as the CREDIMUJER Program, as an entrepreneurship program whose purpose is to promote the development of productive and service activities that contribute to the improvement of living conditions for individuals, families, and their communities. The CREDIMUJER Program functions under the budgetary and administrative jurisdiction of the Secretary of State in the Office of Economic Development, without this limiting the functions of other State Secretariats or Public Institutions, within the framework of the activities carried out by this entity to promote the development of micro, small, and medium enterprises.

PURPOSE. The Solidarity Credit Program for Rural Women (CREDIMUJER) is the technical-financial instrument of the State to address the local demands of organized rural women, through development projects, having as its main instrument the facilitation of access to credit and technical assistance, under the following conditions:

• 1)

  That the Project to be developed evidences the existence of a Business Plan on which credit is used for the acquisition of capital goods or working capital;

• 2)

  That the solidarity group evidences experience in the business activity proposed to be carried out; and,

• 3)

  That the applicant evidences the existence of the market where she will place her products. Activities directed to micro, small, and medium enterprises of agricultural production, agriculture, aquaculture, agro-livestock, livestock, semi-culture, home and fishing transformation, minor infrastructure, formal and informal commerce and/or services may be financed with resources from the CREDIMUJER Program, in accordance with the conditions and requirements established in the Operating Manual of the CREDIMUJER Program. The CREDIMUJER Program must focus its interventions throughout the country, prioritizing communities with the highest incidence of poverty and zones with high agroecological vulnerability.

OBJECTIVE OF THE PROGRAM. The CREDIMUJER Program has the following objective:

• 1)

  To reduce vulnerability due to gender condition and the weakness of processes of economic and social participation of women;

• 2)

  To establish programs for the granting of solidarity credits for the development of agricultural and non-agricultural productive activities in amounts, guarantee conditions, low interest rates, repayment periods, and other conditions that facilitate access to credit and its optimal use;

• 3)

  To establish technical assistance programs in the formation of Basic Production Units (UPB), in business services, access to new technologies, access to markets, and any other assistance that increases the value-added chain, quality, and capacity for credit and business management of women;

• 4)

  To establish a support and research network to strengthen entrepreneurial culture and innovation to diversify productive activities and open new market opportunities;

• 5)

  To establish coordination mechanisms with other State Secretariats that execute functions related to the purpose of this Law in order that they support the development of the CREDIMUJER Program, particularly the State Secretariats in the Offices of Agriculture and Livestock, Development and Social Inclusion; the Honduran Institute of Professional Training (INFOP), the National Institute of Women (INAM), the Honduran Institute of Tourism (IHT), National Agrarian Institute (INA), National Bank of Agricultural Development (BANADESA), and universities and state schools in the branches of agriculture and business, through programs of financial, formative, and technological support;

• 6)

  To establish agreements with Non-Governmental Organizations and private entities in relation to support programs or through programs or activities of Corporate Social Responsibility that they develop;

• 7)

  To enable new modalities of access to financial and non-financial resources that allow the increase of rural production, employment, and income for women in rural communities; and,

• 8)

  To comply with commitments assumed by the State of Honduras in International Treaties and Conventions related to the rights of women. CHAPTER II FUNCTIONAL FRAMEWORK

CREDIMUJER FUND. To finance the activities of the Program, the Solidarity Credit Fund for Rural Women (CREDIMUJER) is hereby created, which must be administered through a Trust established by the Secretary of State in the Office of Finances, in the Honduran Bank for Production and Housing (BANHPROVÍ), in accordance with the provisions determined in this Law.

ASSETS. The assets of the Trust are constituted by:

• 1)

  Ordinary and special contributions from the State that are included in the General Budget of Income and Expenses of the Republic;

• 2)

  Contributions and donations from national organizations and international cooperating entities;

• 3)

  Subsidies and relief funds that contribute to reducing the cost of resources that must be placed in credits to the beneficiaries of the CREDIMUJER Program;

• 4)

  Loans contracted by the Fiduciary Agent with national and international financial institutions, to strengthen the activities of the CREDIMUJER Program;

• 5)

  Other transfers, bequests, and donations from natural or juridical persons;

• 6)

  Collection for services rendered by the CREDIMUJER Program, as determined by this Law; and,

• 7)

  Income from patrimonial revenues and other income.

OPERATION OF THE TRUST. Investment plans must be authorized annually by the Secretary of State in the Office of Economic Development with the opinion of the Consultative Council of the Solidarity Credit Program for Rural Women (CREDIMUJER). The resources of the Trust may only be used for credit operations and therefore cannot cover operating expenses and costs of technical assistance of any public entity.

FUNCTIONING OF THE TRUST. The Trust must function under the following scheme:

• 1)

  The fiduciary institution that must act as a Second-Floor Bank;

• 2)

  A network of financial institutions, credit cooperatives, rural savings banks, and other qualified financial institutions that must function as agents for placing the credit resources of the CREDIMUJER Program;

• 3)

  The network of risk placement institutions must be qualified by the financial institution and in turn to the institutions that make up the network, among those that have credit experience for MSMEs and present conditions of capacity, experience, prudence, and responsibility in the management of these operations;

• 4)

  Credit risk must be assumed by the resource placement network or by the agent that in turn will place the final borrower;

• 5)

  The fiduciary contract must determine the modalities of placement whether through advances, credits, advances, and rediscounts of credit documents, which will be applied in the relationship between the second-floor institution and the credit placement network; and,

• 6)

  The other conditions of the fiduciary mandate must be recorded in the trust establishment contract, including provisions regarding the determination of the financing plan and other formalities of administration and presentation of progress reports, the results of the trust's activities, and the term itself of the trust.

THE CREDIT REGULATIONS. Once the Trust is established, the Credit Regulations will be drawn up by which the operations for placing resources in solidarity credit operations, financial leasing, and other guarantee modalities among the beneficiaries of the Solidarity Credit Program for Rural Women (CREDIMUJER) will be regulated. These Regulations must be elaborated within a term of ninety (90) days jointly between the fiduciary institution and the State Secretariats in the Offices of Economic Development and Finances, as those responsible for the management of the Solidarity Credit Program for Rural Women (CREDIMUJER) and will form part of the Trust documentation. In addition to the stipulations indicated in Article 2 of this Law, the CREDIMUJER Program Plan and the Credit Regulations must be based on the experiences of managing microcredit for the development of enterprises and self-employment activities that have proven successful at the national and international levels. Credit operations can only be carried out with groups or productive associations under the modality of the solidarity program.

TECHNICAL ASSISTANCE PROGRAM. The Secretary of State in the Office of Economic Development, through the executing unit that it designates as mandated by this Law, in coordination with other public entities, non-governmental organizations, and private entities as determined in numerals 3), 5), and 6) of Article 3 of this Law, must establish the Annual Technical Assistance Program for women entrepreneurs included in the CREDIMUJER Program to develop capacities, the appropriation of new technologies, productive innovation, administration of small businesses and enterprises, the formation of business chains, location and financing of markets for producers, in any case technical assistance must be defined based on successful experiences in the management of this type of business. The Secretary of State in the Office of Economic Development must issue the Technical Assistance Regulations of the CREDIMUJER Program determining the mechanisms to carry out technical training, without prejudice to the credit supervision actions of the resource placement entities and operates an effective dissemination system on the activities of the CREDIMUJER Program.

PUBLICATION OF REPORTS. The reports presented by the fiduciary institution must be published annually in order to make transparent the rendering of accounts in the activities of the trust.

CONSULTATIVE COUNCIL OF THE CREDIMUJER PROGRAM. For purposes of consultation, advisory, monitoring, and social audit, the Consultative Council of the Solidarity Credit Program for Rural Women (CREDIMUJER) is hereby constituted, with the following composition:

• 1)

  One (representative) at the ministerial level of the Secretary of State in the Office of Economic Development, who must coordinate it;

• 2)

  One (representative) at the ministerial level of the Secretary of State in the Offices of Agriculture and Livestock;

• 3)

  One (representative) at the ministerial level of the Secretary of State in the Office of Development and Social Inclusion;

• 4)

  One (representative) at the ministerial level of the Secretary of State in the Office of Finances;

• 5)

  One (representative) at the executive level of the National Institute of Women (INAM);

• 6)

  One representative of the Vía Campesina;

• 7)

  One representative of the Agricultural Platform;

• 8)

  One representative of rural women networks;

• 9)

  One representative of organizations of indigenous women; and,

• 10)

  One representative of Afro-descendant organizations. The representatives of the organizations of peasant women must be elected for a period of two (2) years and may be re-elected for one more period. The accreditation of the representatives of the same must be verified by the Secretary of State in the Office of Economic Development.

FUNCTIONS OF THE CONSULTATIVE COUNCIL. The Consultative Council of the Solidarity Credit Program for Rural Women (CREDIMUJER) has the following functions:

• 1)

  To present recommendations on policies that should be taken into consideration for the strengthening of the CREDIMUJER Program;

• 2)

  To issue opinions on policy documents, regulations, operating manual, as well as the strategies and credit activities planned to be implemented;

• 3)

  To conduct social audit activities on the activities of the CREDIMUJER Program;

• 4)

  To report, before competent authorities, irregularities that occur by those responsible for the implementation and the beneficiaries of the CREDIMUJER Program;

• 5)

  To disseminate and promote among the beneficiary groups the available credit programs;

• 6)

  To propose to the entity responsible for administering the CREDIMUJER Program, needs relating to groups that require new financing and to issue an opinion on the Annual Investment Plan of the Trust;

• 7)

  To develop participatory processes that strengthen the capacity of organizations of rural women in identifying and prioritizing their needs to express their demands for technical assistance and financing, as well as to define actions for management and negotiation of their economic activities; and,

• 8)

  To promote new sources of resources that financially support the Fiduciary Fund for Solidarity Credit for Rural Women (CREDIMUJER). The Consultative Council must meet ordinarily at least two (2) times per year and extraordinarily when convoked by the Secretary of State in the Office of Economic Development, by three (3) or more of its members. Its performance is ad honorem and for the purposes of its functioning must be supported financially by the Secretary of State in the Office of Economic Development.

STATE OVERSIGHT ACTION. The State Oversight Bodies must exercise their supervisory function over the CREDIMUJER Program, within their respective scope of authority and ensure compliance with the obligations corresponding to those responsible for administering the resources of the Program (CREDIMUJER), who must observe the administrative transparency requirements demanded by the corresponding laws. Without prejudice to what is established in the preceding paragraph and for the purpose of guaranteeing proper management of the CREDIMUJER Program and when circumstances so warrant, the Honduran Bank for Production and Housing (BANHPROVI) as responsible for administering the CREDIMUJER Program, may contract consulting services and Project evaluation services.

COMPLEMENTARY SUPPORT. The Secretary of State in the Office of Finances, through the General Directorate of Public Investments (DIGIP), must participate in the development of support and monitoring actions for the activities of the CREDIMUJER Program. The contracting of qualified companies to conduct evaluations must be done through public competition.

COMPLEMENTARY FINANCIAL MANAGEMENT. The CREDIMUJER Program must manage resources and new institutional sources that financially support the Fiduciary Fund of the CREDIMUJER Program including the use of any financial support program promoted by the Executive Branch for the reactivation of the agricultural, agroindustrial, and agroalimentary productive sectors.

SUPPORT FOR TECHNICAL ASSISTANCE. In order to strengthen the institutional capacity of the CREDIMUJER Program, in aspects related to technical assistance, training of human resources, supervision, monitoring, evaluation and audit of rural development processes, the State Secretary in the Offices of Agriculture and Livestock and the National Program for Sustainable Rural Development must provide personnel with experience in each of the topics, in accordance with the needs of rural women. Additionally, non-reimbursable technical cooperation can be sought with cooperation organizations and/or friendly governments for the institutional strengthening of the CREDIMUJER Program, in order to efficiently fulfill its functions. CHAPTER III FINAL AND TRANSITORY PROVISIONS

ORGANIZATION OF THE EXECUTING UNIT. Within ninety (90) days from the date this Law enters into force in compliance with the provisions of Article 1 thereof, the Executive Power through the State Secretary in the Office of Economic Development must assign in an executing unit within its existing organization for support to micro, small and medium enterprises, the functions corresponding to the administration of the CREDI-MUJER Program. Within this period, it must equally establish itself by means of an initial contribution through internal transfer of no less than FIVE MILLION LEMPIRAS (L. 5,000,000.00) to initiate the Trust Fund of the Solidarity Credit Fund for Rural Women (CREDIMUJER) referred to in Article 4 of this Law.

REGULATIONS. The Executive Power, through the State Secretary in the Office of Economic Development and with the support of the State Secretaries in the Offices of Social Development and Inclusion and of Agriculture and Livestock, within a period of ninety (90) days, shall issue the Regulations relating to this Law.

BUDGETARY MANAGEMENT. The State Secretary in the Office of Finance is authorized, in coordination with the State Secretary in the Office of Economic Development, to include in the Budgets of Income and Expenditures of the Republic corresponding and in progressive manner, the budgetary items of the ordinary and special contributions of the State to the Trust Fund of the CREDIMUJER Program, ensuring that in the absence of these, the Solidarity Credit Program for Rural Women (CREDIMUJER) can begin its operation with resources from external cooperation, from contracting of small loans or with any other elements that make up the assets of said trust fund, including the transfer or simultaneous management of other state credit support programs.

ELIGIBLE BENEFITS. For purposes of this Law, an economic initiative is understood as one of a personal or collective nature that has as its purpose the production of goods and services, without any requirement regarding the number of employees and capital size, although in its basic expression.

EFFECTIVE DATE. This Decree enters into force as of the day of its publication in the Official Gazette La Gaceta. Given in the city of Tegucigalpa, municipality of the Central District, in the Hall of Sessions of the National Congress, the first of October of two thousand fifteen. ANTONIO CESAR RIVERA CALLEJAS PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY SARA ISMELA MEDINA GALO SECRETARY To the Executive Power. Therefore: Execute. Tegucigalpa, M.D.C., November 24, 2015. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE OFFICE OF ECONOMIC DEVELOPMENT ALDEN RIVERA MONTES