Bill would create new way to secure business loans

The central government has presented lawmakers with a bill that is designed to expand the credit possibilities of mall- and medium-size businesses.

The bill would create what is known as garantías mobiliarias to secure loans. This would be an option in addition to traditional mortgages. Companies would be able to offer inventory, cash flow or other assets. The goal is to expand the credit available for firms. The concept is similar to that of a chattel mortgage that is used to secure moveable goods under English and U.S. law.

The bill was put forward by President Laura Chinchilla and Mayi Antillón, minister of Economía, Industrias y Comercio. The measure is taken from a model law proposed by the Organization of American States. The model bill calls for the creation of a registry where the goods or asset that is embargoed will be made known to the public.

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