Honduras National Congress Approves the Law of Secured Transactions
Tegucigalpa, August 19, 2009.- On this date, the National Congress of the Republic approved in a third and last debate, the Law of Secured Transactions. This has been an initiative jointly promoted by the Millennium Challenge Account-Honduras, the private sector and Honduras civil society in an effort to widen and facilitate access to local credit in more competitive conditions, by incorporating an ampler inclusion of goods, rights and actions that can be placed as collateral to guarantee loans.
This new Law will benefit about 2.5 million productive units of the informal agricultural and industrial sector, which are expected to obtain funding in more favorable conditions, with lower rates, in higher amounts and in longer terms according to the investment timing, all in order to secure a lower risk for the lender and to generate more competitiveness.
Millennium Challenge Account- Honduras creating greater opportunities for national agriculture.
The approval of the Law of Secured Transactions will allow the Millennium Challenge Account to invest resources in regulating the new legal framework, training the registry´s staff and users, and procuring the equipment needed to operate the registry created by the law.
Institutions such as the Honduran National Business Council (COHEP), the National Industry Association (ANDI), the Honduran Banking Association (AHIBA), the National Federation of Agricultural Producers and Cattle Growers (FENAGH) and the Network of Micro-Finance Institutions of Honduras (REDMICROH) have spearheaded the preparation, socialization and promotion of this important initiative. Prior to its congressional approval, the new legal framework was favorably ruled by the Supreme Court.
To obtain new credit, the new legislation will allow placing as collateral, movable goods such as inventories, equipment, machinery, sales contracts and a series of goods that will transform entrepreneurs into “bankable” subjects.
This web site was made possible through a grant given by the people of the United States to Honduras through the Millennium Challenge Corporation under the terms of a compact signed between the two countries. The information provided on this Web site is not official
U.S. Government information and does not represent the views or positions of the U.S. Government or
the Millennium Challenge Corporation.