Decree 41-2020

This decree authorizes the Central Bank and BANHPROVI to create guarantee funds and trusts with credit resources to support loans to small and medium enterprises, banana producers, and other productive sectors. It benefits entrepreneurs and MSMEs facing difficulties accessing financing, facilitating loans with guarantees that reduce risk for banks and financial intermediaries.

That the MSME sector generates approximately seventy percent (70%) of employment in Honduras; however, in many cases, due to lack of collateral, they are unable to access financing that would allow them to obtain working capital or make investments in their businesses; which makes it necessary to create financial mechanisms that support this sector, which is of great importance to our country.

That it is necessary for the Honduran Bank for Production and Housing (BANHPROVI) to continue promoting access, financial inclusion and solvency to all priority sectors in job generation and/or foreign exchange generation for the country.

That the Honduran Bank for Production and Housing (BANHPROVI) is a financial institution of public services and its purpose is to promote, through the financial services it provides, the growth and socioeconomic development of all Hondurans through inclusive financing, which generates access, solvency and financial inclusion. To this end, it carries out its operations directly (First Floor), or through Intermediate Financial Institutions (Second Floor).

That in light of the economic impact caused by the COVID-19 pandemic, it is necessary to maintain the immediate availability of cash flow necessary to address the economic financing needs of the country's productive sectors.

That the operations of trusts are governed by the provisions of the Financial System Law, the Commercial Code and by the resolutions issued on the matter by the National Banking and Insurance Commission (CNBS) or the Central Bank of Honduras (BCH), within the scope of their competencies.

That in matters of trusts, the beneficiary of the trust is generally always a beneficiary, but conversely, not every beneficiary is a trust beneficiary, the foregoing in view of the fact that, in the case of the former (beneficiary of the trust), it is the natural or legal person for whose benefit the trust is established and thus is established in the contract executed for that purpose, also being another subject of the trust in which it acquires rights and obligations, even enjoying the residual of the trust at the end if there are any, and in the case of the latter (beneficiary), it does not appear as a subject of the trust, that is, it is not part of said contract as a subject thereof, however it enjoys the benefits granted by the trust and this does not make it a beneficiary of the trust.

That Article 17 of Decree No. 33-2020 dated April 2, 2020, authorizes the Honduran Bank for Production and Housing (BANHPROVI) to establish and administer any type of GUARANTEE FUNDS.

That Article 2 of the Financial Support Law for the Productive Sectors of Honduras empowers the Central Bank of Honduras (BCH) to establish a Trust for Administration and Investment in the Honduran Bank for Production and Housing (BANHPROVI).

That the Honduran Bank for Production and Housing (BANHPROVI), in its capacity as Trustee, has administered since 2009 the Trust called "BCH-BANHPROVI Administration and Investment Trust" whose main objective is financial support for the productive sectors of Honduras.

That in Article 17 of the Law of Aid to the Productive Sector and Workers in the Face of the Effects of the Pandemic Caused by COVID-19, the Honduran Bank for Production and Housing (BANHPROVI) is authorized to establish any type of Guarantee Funds.

That currently Honduran Bank for Production and Housing (BANHPROVI) in addition to Banking has classified 57 intermediaries among Financial Companies, Private Development Organizations, Savings and Credit Cooperatives, Production Cooperatives, Non-Banking Financial Intermediaries and Rural Savings and Credit Boxes.

That through Article 13 of Decree No. 131-98 of the Law for Stimulus to Production, Competitiveness and Support for Human Development, the Special Financing Line for Independent Banana Producers is created.

That the Honduran Bank for Production and Housing (BANHPROVI) in its capacity as Trustee administers the Credit Line for Independent Banana Growers and Others, whose objective is the financing of productive projects of independent banana growers, independent producers and Banana Cooperatives.

That through Decree No. 92-2018 CONFIANZA SA-FGR is authorized as Administrator of the Fund for the Coffee Sector (FONCAFE) for an amount of Three Hundred Million Lempiras (L.300,000,000.00) with the initial objective of guaranteeing credits to producers in the Coffee sector.

That through Executive Decree number PCM 030-2020 issued and published in the Official Gazette "La Gaceta" on April 9, 2020, in response to the health and economic crisis generated by COVID-19 that has affected the productive sectors of the country, putting at risk the jobs and livelihoods of Honduran families, CONFIANZA SA-FGR is authorized to through the Fund for the Coffee Sector (FONCAFE) grant reciprocal guarantees to other priority sectors that include the Agri-food Sector, Food Agroindustry and Micro, Small and Medium Enterprises.

That in Honduras, according to data provided by the Reciprocal Guarantee Fund Management Company CONFIANZA SA-FGR, to date has benefited 105,564 MSMEs, Independent Workers, Entrepreneurs and Small Producers, who have received credits for a total value of Seven Thousand Nine Hundred Sixty-Three Million Lempiras (L.7,963,000,000.00). Likewise, said financing has contributed to the maintenance and creation of 157,500 jobs. CONSIDERING: The Honduran Bank for Production and Housing (BANHPROVI) maintains in its portfolio of own funds and trusts a proportion of housing credits of around fifty percent.

That in accordance with what is established in Article 205 Attribution 1) of the Constitution of the Republic, it is the Power of the National Congress: To create, decree, interpret, reform and repeal laws.