In a public event
The Millennium Challenge Account Submits Draft of the Movable Property Law to the Minister of the Presidency
In an effort to expand the category of goods to be placed as guarantee to access credit, and as a result of the active participation from the part of the civil society, as well as of an intense promotional process among key stakeholders, the draft of the Movable Property Law has been submitted to National Congress.
Tegucigalpa.- During an event held in Tegucigalpa last August 9th,, MCA-Honduras formally delivered to the Ministry of the Presidency of Honduras, the draft of the Movable Property Law which, in the same act, was submitted to representatives of the National Congress for its discussion, approval and further implementation.
Invitees to the act included all the key actors that participated in the validation and promotional process of the Law, who were represented, among others, by the Chamber of Commerce and Industry of Tegucigalpa (CCIT), the Honduras Bank Association (AHIBA), the Honduran Council of Private Enterprise (COHEP), the Ministry of Finance (SEFIN) and the Ministry of Industry and Commerce.
The draft of the Law was submitted by the Millennium Challenge Account of Honduras to the Ministry of the Presidency, who in turn submitted it to the Congressional Representative.
The act was presided by Mr. Yani Rosenthal, Minister of the Presidency; Martín Ochoa, General Director of MCA-Honduras; John Wingle, MCC Director for Honduras and representative of the funding institution; Ricardo Arias, Ander Secretary of the Presidency; Mario Bustillo of CCIT; María Lydia Solano of AHIBA; Víctoria Asfura of COHEP; Hugo Castillo, Under Secretary of Finance; Virgilio Umanzor, National Commissioner of Competitiveness; and Dr. Boris Kozolchyk, international speaker of the National Law Center for Inter American Free Trade.
In charge of receiving the document, Congressional representative Valentín Suarez thanked MCA-Honduras for the initiative to promote this new legal instrument, which will certainly help accessing credit for big, medium and small entrepreneurs of different productive sectors nationwide.
The goals of the Movable Property Law are aimed to expand the options regarding goods that shall constitute guarantees to obtain loans, allowing the owner to maintain property, and permitting lending institutions to expedite the execution of their rights over goods placed as guarantees. It is expected that the new law will also allow the creation of a regional credit market that will be based on legal structures that will enable the organization of an electronic registry network that will operate in Honduras. This will also imply the creation of a sole registry database for the country.
MCA-Honduras is actually promoting this Movable Property Law, as part of the Farmers Access to Credit Activity included in the Program and, in order to assist potential users to benefit from the competitive advantages that this new legislation will be offering, MCA-Honduras will also be financing the organization of a new registry system, as well as the technical assistance needed to prepare the national banking system, lawyers, judges and financial institutions to implement the new legislation.
By approving this Law, Honduras will actually be the leader in Latin America in adopting a legal framework to regulate a specialized credit which is currently recognized by the main global markets. With the implementation of this Law, the country expects to mobilize between 3 and 6 percent of the Internal Gross Product, generating more opportunities for economic growth and poverty reduction.
Partial view of attendees.
Main authorities presiding the meeting.