Movable Guarantees Law, supporting small and medium farmers
The Movables Guarantees Law is an initiative born out as a result of the efforts of the Private Sector and the Civil Society together with the funding and technical support of the Millennium Challenge Account – Honduras, whom acknowledging the problems encountered by small entrepreneurs to Access credit because of the deficient existing legal framework which limited the competitiveness of producing entities and turned the execution of securities into a delayed and insecure proceeding were able to after three years of work, to achieve its approval.
With the enforcement of the law credit in the national financial system will be encouraged through the enhancing of the assets, rights and actions that may be used as collateral.
The Movable Guarantees Law will expedite Access to credit for domestic man/women farmers.
The enforcing of the Movable Guarantees Law is a direct benefit for entrepreneurs hat have not been able to Access credit for lack of financial support.
In order for producer sectors to benefit from the goodness of the Movable Guarantees Law, a new legal framework creates an efficient and simplified registration system which may be accessed electronically from everywhere and registrations can be made in the same manner, expediting the proceedings for small and medium farmers.
Household Electric appliances, machinery, crops, vehicles or any other movable or non movable asset owned by an individual or company may constitute collateral and serve as support at the time of requesting a credit.
The Tegucigalpa Chamber of Commerce and Trade CCIT will be the entity in charge of keeping the record of registrations of assets used as collateral and the funds resulting from registrations will be also managed by the Chamber.
The enforcement of the Movable Guarantees Law is a direct benefit for entrepreneurs that have not been able to have Access to credit because of their lack of financial support; with the enforcing of this legal framework productivity will be increased creating better opportunities for domestic farmers.
For a more competitive Honduras the Movable Guarantees Law is a reality with the support of the Millennium Challenge Account - Honduras.
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.