OBJECTIVE
On June eleventh, two thousand and twenty, the regulations of the Guarantee Fund for the reactivation of the larger companies (EMT) affected by the pandemic caused by Covid-19 were approved, whose main objective is to define the operability of the Guarantee Fund for the reactivation of the Micro, Small and Medium Enterprises affected by Covid-19, as a mechanism to encourage the access to credit for the reactivation of the economic activity of the MSMEs that have been affected by the decrease of their cash flows, derived from the restrictive mobilization measures taken by the Government of the Republic to avoid the spread of Covid-19, through the issuance of Credit Guarantees.
REFORMS
On July 1, 2021, articles 23 and 42-A of the aforementioned regulation were amended.
The purpose of this reform is to improve the applicability of the guarantee funds created by the Central Bank of Honduras so that they can be used to the fullest extent possible.
The guarantee fund will back between 40% and 60% of the loans granted to larger companies, taking into account the criteria established in the regulations, and will issue Guarantee Coverage Certificates, up to a maximum amount of fifty million lempiras (l. 50,000,000,000 lempiras). In addition, Article 42-A mentions that in those cases in which the beneficiary decides not to continue with the guarantee, BANHPROVI will proceed to refund the commission for issuing the guarantee partially for months completed as of the month following the approval. Once this refund has been made, it is understood that the Guarantee has lost its validity. There is a term of ten working days to resolve the request for the refund of the guarantee issuance fee.