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Microfinance institutions will be able to take advantage of the patrimonial strengthening program until April 31

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The Executive Branch approved this Wednesday an emergency decree that extends until April 31 of this year the term for the program to strengthen assets of specialized microfinance institutions (municipal boxes and rural, as well as microfinance institutions). The term expired on March 31.

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This was announced by the head of the Ministry of Economy and Finance (MEF), Óscar Graham, who added that the capital ratio used by companies in the Finance system.

“We are extending the flexibility of the capital ratio used by companies in the financial system until March 2023, this to allow a more orderly, gradual recovery of companies in the financial system and not generate stress,” the official said at a press conference.

It should be noted that the Patrimonial Strengthening Program for Specialized Microfinance Institutions It consists of three subprograms:

  • Strengthening of the municipal savings and credit banks, through the temporary participation of the State in their capital. Cajas municipales are microfinance institutions owned by municipal governments.
  • Strengthening of institutions microfinance private (rural and microfinance banks), through the temporary purchase of representative instruments of subordinated debt, in exchange for an established return, as an investment in these financial assets traditionally operates.
  • Corporate reorganization of microfinance institutions, aimed at facilitating the consolidation of the companies that participate in the program, if necessary.
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Source: Larepublica

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