In order to increase the financial inclusion, improve access to different financing mechanisms, modernize payment systems, update the capital market and combat the so-called credit ‘drop by drop’, The government filed in Congress the bill “by which norms related to access and financing for the construction of equity are dictated and other provisions are dictated”.
(See: In 2021, credits in the country increased 42%).
The initiative includes a large part of the capital market bill that the Government withdrew to prevent its collapse, and which had been the fruit of extensive discussion by experts from the Capital Market Mission, which ran for several months in 2019.
According to the Ministry of the Treasury, the objective of this initiative is to give greater dynamism to financing options, which will make it possible to boost economic growth, increase the social welfare of citizens, through the generation of employment and opportunities, and continue contributing to the economic reactivation.
(See: BBVA gave sustainable loans for $1.3 trillion during 2021).
“This is a project that will not only allow us to increase social welfare and equity in the country, but will also be key in the fight against informal and highly expensive schemes, such as ‘drop by drop’ or ‘paid daily’ schemes. This initiative will contribute to this end by universalizing access to legal, insurance and low-cost financing schemes.”, explained the Minister of Finance, José Manuel Restrepo.
The project contemplates the incentive to loans to the highly informal population, passing through credits to small and medium-sized agricultural producers, up to financing for micro, small and medium entrepreneurs and the promotion of access to the capital market as a financing alternative for the attainment of citizens’ resources, for productive projects and includes support for credits by the National Guarantee Fund up to 90%.
(See: Women continue to access credit in a lower proportion: why).
It aims to promote universal, efficient and secure access to the payment system, allowing more and more people to carry out their transactions electronically, in an agile and secure manner, in turn promoting electronic commerce.
Better conditions will be created to generate more competition, by allowing the entry of new entities that specialize in activities, with regulatory requirements proportional to its business model.
Intermediaries can offer the services in which they want to specialize, allowing them to reduce their operating costs and, therefore, offer cheaper products and services to citizens. The project carries a message of urgency to approve it quickly.
(See: Colombian fintechs advance towards new markets).
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