Special Law on Economic Reactivation Through Support for Microenterprises
Congreso Nacional
- Decree: 155-2012
- Published: February 7, 2012
- Issuing body: Congreso Nacional
- Category: Commercial
Summary
This law helps small and medium-sized business owners access credit again by allowing banks to refinance debts of up to US$25,000 without penalizing their credit history. The State contributes 100 million lempiras annually (2013-2017) to guarantee funds to support these loans and facilitate access to formal financing.
Considerations
Whereas the political and economic crisis generated in the country starting in 2009 has caused adverse effects in the MIPYMES sector, affecting its capacity to pay and leading to non-compliance with its credit obligations.
Whereas the MIPYMES sector has an important impact on the social sector of the economy, affecting the most vulnerable families, which for reasons beyond their control have failed to meet their payment obligations to supervised financial institutions, which is reflected in the credit bureau, such as the Credit Information Center (CIC) administered by the National Banking and Insurance Commission (CNBS), and those existing in the private sector, known as 'risk centers'.
Whereas in the Grand National Agreement of February 7, 2012 signed by the Government and the Private, Labor, and Peasant sectors, a support strategy for MIPYMES was incorporated, articulating 28 of 100 proposed actions, of which 63 and 64 are linked to making the risk center more flexible and improving access to credit for MIPYMES.
Whereas it is necessary that the National Banking and Insurance Commission (CNBS), given the situation described, issue a resolution allowing the financial system to temporarily modify the risk categories for MIPYMES that refinance their credits.
Whereas it is absolutely necessary to address the structural problems that prevent MIPYMES from having access to formal credit due to lack of guarantees, which is achieved in large measure by financially strengthening the assets of the Guarantee Fund for Micro, Small and Medium Enterprises and the Agricultural and Livestock Mutual Guarantee Fund, created through the Law of the System of Reciprocal Guarantee Funds for the Promotion of MIPYMES, Social Housing and Technical-Professional Education approved by Legislative Decree No. 205-2011 dated November 15, 2011.
Whereas it is the responsibility of the National Congress to create, decree, interpret, reform, or repeal the law.
Amendments
Articles
That in the exercise of its powers, the National Commission of Banks and Insurance (CNBS) grants to the entities of the supervised financial system a period of six (6) months to analyze each case and determine the feasibility of refinancing debts to MIPYMEs that are in adverse risk categories, and whose equivalent balances in national currency up to Twenty-Five Thousand Dollars of the United States of America (US$ 25,000.00). This provision includes the authority of financial entities to grant new loans or expand existing ones.
It corresponds to the Secretariat of State in the Offices of Industry and Commerce (SIC) to inform the MIPYME sector about the scope of this Decree, and the additional measures that the National Commission of Banks and Insurance (CNBS) has issued or issues to promote access to credit in said sector or within the framework of this Decree.
Natural or legal persons who have entered into information exchange agreements with one or more credit bureaus have the obligation to update the credit information of their clients within the first ten (10) business days following the close of each month. This information must be sent by the credit bureaus to the Commission of Banks and Insurance (CNBS) for follow-up. Failure to comply with this provision shall be sanctioned by the National Commission of Banks and Insurance (CNBS) in accordance with the provisions of the current legal framework for the credit bureau. Any party making claims before the credit bureaus shall send a copy of their proceedings to the National Commission of Banks and Insurance (CNBS) for the purposes of appropriate follow-up. The client has the right to require that any business with which he or she maintains or has maintained relations extend proof of their credit record. The Consumer Protection Directorate and the Consumer Prosecutor's Office have the obligation to monitor compliance with this provision.
The General Budgets of Income and Expenditures of the Republic in the Fiscal Years corresponding to the years 2013, 2014, 2015, 2016, and 2017 must contain a budgetary allocation as a contribution from the State of One Hundred Million Lempiras (L. 100,000,000.00) to each of the following guarantee funds: 1) Guarantee Fund for Micro, Small and Medium Enterprises; and, 2) Agricultural Reciprocal Guarantee Fund, created by means of the Law of the System of Reciprocal Guarantee Funds for the Promotion of MIPYMEs, Social Housing and Technical-Professional Education approved by Legislative Decree No. 205-2011 of November 15, 2011, published in the Official Newspaper La Gaceta of January 26, 2012, with the purpose of supporting micro, small and medium enterprises including those in the agricultural sector, with loans in national currency up to an amount equivalent to TWENTY-FIVE THOUSAND DOLLARS OF THE UNITED STATES OF AMERICA (US$ 25,000.00). The budgetary allocation indicated in the preceding paragraph shall be assigned to the Budget of the Secretariat of State in the Offices of Industry and Commerce and transferred directly by the Secretariat of State in the Office of Finance to the guarantee funds.
The Budget Legislative Commission of the National Congress must ensure compliance with the provisions of the previous article, must submit a preliminary report to the Plenary of the National Congress before the annual approval of the respective General Budget of Income and Expenditures, and a quarterly report of its execution. The Budget Commission, in order to obtain better information, shall be assisted by a Special Commission composed of a representative from the following institutions:
- 1)
The Presidency of the Republic;
- 2)
National Commission of Banks and Insurance (CNBS);
- 3)
Secretariat of State in the Offices of Industry and Commerce (SIC);
- 4)
Secretariat of State in the Offices of Agriculture and Livestock (SAG);
- 5)
National Association of Medium and Small Industries of Honduras (ANMPIH);
- 6)
Honduran Association of Banking Institutions (AHIBA);
- 7)
The Network of Microfinance Institutions of Honduras (REDMICROH);
- 8)
Honduran Council of the Social Sector of the Economy (COHDESSE); and,
- 9)
The representation of each of the following labor and peasant confederations: General Confederation of Workers of Honduras (CGT), Confederation of Workers of Honduras (CTH), Unitary Confederation of Workers of Honduras (CUTH), National Confederation of Peasants (CNC), Council of Peasant Women of Honduras (CMCH) and Coordinating Council of Peasant Organizations of Honduras (COCOCH). Public or private institutions that manage public funds intended for projects or programs to support MIPYMEs have the obligation to provide the information required by the Budget Commission of the National Congress for the purposes of this article. This commission must make an evaluation of the MIPYME support projects under the charge of different State entities, taking criteria such as: the results obtained, degree of execution and impact thereof, especially in job creation and production of goods and services and others of equal relevance. The results of these evaluations must be considered in the preparation and approval of the general budgets of income and expenditures referred to in Article 4 of this Decree.
The Secretariat of State in the Offices of Industry and Commerce (SIC) must develop programs of technical-financial assistance and commercialization to achieve the objectives of this Law.
The National Commission of Banks and Insurance (CNBS) shall provide technical assistance to a Special Commission of the National Congress to prepare, within a period of sixty (60) days from the effective date of this Decree, a draft law referring to the development of the provisions established in Article 334 of the Constitution of the Republic regarding the creation of a Superintendence of Corporations.
This Decree shall enter into effect as of the day of its publication in the Official Newspaper La Gaceta. Given in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress on the twenty-sixth day of the month of September of two thousand twelve. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT RIGOBERTO CHANG CASTILLO SECRETARY GLADIS AURORA LOPEZ CALDERON SECRETARY To the Executive Branch. Therefore: Let it be executed. Tegucigalpa, M.D.C., December 20, 2012. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICES OF INDUSTRY AND COMMERCE. JOSE ADONIS LAVAIRE THE SECRETARY OF STATE IN THE OFFICE OF FINANCE. WILFREDO CERRATO RODRIGUEZ
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