Allow access to microcredits with government guarantees of up to 90% for some 10 million people who use the so-called ‘drop by drop’mechanisms of financing for micro, small and medium enterprises and farmersmodernization of payment systems and some capital market regulations, includes the Financing for All bill.
(What is Colombia doing to counteract the ‘drop by drop’).
This was announced by the Minister of Finance, José Manuel Restrepo, when making a presentation of the initiative that with an urgent message is expected to be discussion begins in the third committees of the Senate and the House of Representatives after Easter.
“The first pillar of the project is financing for all, to multiply the delivery of credits to micro, small and medium-sized entrepreneurs”, which according to the official said, “seeks to combat drop by drop”.
He added that it is intended to democratize access to low-value credit, up to $300,000 pesos.
The idea, according to Restrepo, is to apply a quick and simplified opening protocol, as well as extend alternative sources to analyze the applicant’s credit profile.
“The State is going to guarantee with the National Guarantee Fund 90% of the credits so that people transit to this system from drop to drop,” said.
He added that this will be achieved through several entities, not only financial ones, that irrigate credits and revealed that the possibility of subsidizing the cost of said guarantee is included, to the extent that budget availability allows it.
The second pillar said, It is access to financing for agricultural producers, also with 90% guarantees, to meet the need for farmers to buy inputs.
(Abc of the project that seeks to end the so-called ‘drop by drop’ credit).
Restrepo assured that with the facility offered by a 90% guarantee by the State, it is sought that millions of informal workers transition to formality. In this way, barriers would be eliminated by promoting low-access sectors and increasing the coverage of the Mipyme Commission.
In addition, he revealed that the credit limits will no longer be up to 25 minimum wages, but up to 100, so that more actors benefit from the strategy.
Another aspect that the project contemplates is that small and medium-sized business units could go to the capital market in search of resources through crowdfunding or debt issues.
In relation to the capital market, he said that it is sought to make the licenses of the actors of the financial and capital market more flexible to assign them according to the specialty they develop.
Felipe Lega, director of the Financial Regulation Unit of the Ministry of Finance, said that if the stock market is to develop, it is not only that the entities want to but also enabling them to issue, encouraging and attracting new investors.
The minister said that the creation of investment companies (current stockbrokers) of general services and fiduciary is established.
(In 2021, loans in the country increased 42%).
Looking to enable processes to generate efficiencies to share operations across borders and merge exchanges, among other aspects.
In terms of insurance, the aim is to open up the possibility of having more alternatives and products.
Regarding the modernization of the payment system, several actors that regulate payments are collected and the Ministry of Finance will centralize this operation to reduce costs and that Colombians can make use of these digital systems in a massive way.
BRIEFCASE
