Bill expanding credit possibilities advances

A legislative committee has approved and sent to the full Asamblea Legislativa a bill that allows securing loans with many more types of security.

The bill would create a registry of guarantees similar to chattel mortgages. Merchants would be able to use their inventory as security. Farmers could pledge their harvests, and firms could attach their patents, contracts and accounts receivables.

The Ministerio de Economía, Industria y Comercio said the use of the non-traditional securities would expand the credit possibilities. The measure is called the Ley de Garantías Mobiliarias, and it was unanimously approved by the Comisión de Asuntos Económicos.

The measure was proposed by the executive branch and has the support of a number of financial institutions. The ministry said that a committee of individuals from many backgrounds studied the bill and sought input from experts because the legislative committee saw it.

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