On March 24 was filed the Financing Law Project by the Ministry of Finance. One of the proposals that is already positioned for the new Congress of the Republic.
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The proposal touches on various issues and financing routes in the country, including problems such as ‘drop by drop’. In the 47 articles of the project, according to Minister José Manuel Restrepo, the aim is to create a single regulation to facilitate access to the financial systemupdate the subsidy scheme and delve into financing mechanisms.
“These mechanisms seek to provide formal financing alternatives to all those Colombians who are forced to resort to informal and highly expensive schemes, known as ‘drop by drop’ or ‘pay daily’. This will allow you to have access to resources without being condemned to pay astronomical amounts in interest.”, said the Minister of Finance at the time.
WHAT IS THE PURPOSE OF THE LAW?
This regulation seeks to have financing alternatives “From the incentive to loans aimed at the highly informal population, passing through credits to small and medium-sized agricultural producers, and financing to micro, small and medium-sized entrepreneurs,” according to the Ministry of Finance.
Also access to the capital market and the payment system to expand electronic transactions.
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WHAT DOES IT PROPOSE?
The project seeks to provide formal financing alternatives to those who have to resort to informal and highly expensive schemes, such as ‘daily payments’, to meet their economic needs.
Specifically, it is proposed that the National Guarantee Fund should implement guarantee lines to these segments, in such a way that it favors the obtaining of credits to the extent that the risk is mitigated by means of said guarantee.
It also proposes subsidizing the cost of these guarantees in accordance with the Government’s budget availability.
WHO WILL BENEFIT?
The law is intended to help small and medium-sized businesses with bank credit alternatives, through the issuance of bonds or shares in the capital market. Also to citizens looking for products and services in the capital market.
WHAT CHANGES DOES THE BILL BRING?
With this proposal, there would be a unification of the payment system headed by the Ministry of Finance and Public Credit. Currently, the regulation is dispersed among various entities.
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WHAT IS THE PAYMENT SYSTEM?
Small businesses could have more payment options at a lower cost. Benefits will also be included for those who access social programswho may have a financial history to access formal credit products.
WHAT IS THE CAPITAL MARKET?
It is the scenario where companies finance their investment projects, through the sale of shares and bonds, to market participants (companies and/or individuals) who seek to obtain returns on their savings.
BRIEFCASE
