The Government regulated Law 27.440 on Productive Financing, which was approved weeks ago by Congress, through the Decree 471 / 2018, published in the Official Gazette this Friday (18.5.2018).
This law promotes the following objectives:
MSME
The reform creates the basis for giving strong support to SME financing: electronic credit invoice for SMEs
The implementation, at the time of issuance of the “MiPyME Electronic Credit Invoice", it can be checked whether the MSME company or the large companies obliged to pay are adhered to or also covered by this Regime.
The electronic credit invoice for micro-SMEs, which must be accepted 30 days after it is issued, will be used as if it were a check that can be negotiated in the markets authorized by the CNV.
Mortgage market development
On the other hand, it develops the mortgage market through mortgage notes and insurance policies adjustable by CER.
Regarding the country's Real Estate Property Registries, notaries will verify that in the event of issuing Scriptural Mortgage Notes, the name and address of the entity that will keep its registry are indicated in the mortgage.
The mortgage deed must be deposited with the entity that keeps the registry; with the financial institution that manages the bill or with the creditor when the latter is a financial institution.
In addition, the mortgage note adjusted by the Reference Stabilization Coefficient (CER) is created, which allows banks to grant mortgages through securitization, which can be sold on the capital market as financial instruments.
Capital Markets
The aim of this regulation is to attract new investments to the country by further developing the sector.
In order to build a solid capital market, which is a means by which savers can channel their savings into investment, there must be legal certainty and investor confidence in the regulator.
This trust can only be achieved with a transparent system and an institutionally strong regulator that has the right tools to protect investors, ensuring that companies operate with the best social, ethical and environmental practices.
This is why it is necessary to harmonize the regulations with international standards by eliminating certain discretionary powers that were granted to the regulator. Therefore, the bill proposes to repeal the power of the National Securities Commission (CNV) to intervene in companies and appoint observers with veto power over decisions of the board of directors of said companies (Article 20 of the Capital Market Law, introduced in 2013 and which gave the CNV the power to appoint observers with veto power on the boards of directors of companies).
Fines are also eliminated as a source of income (the money raised will be transferred to the Treasury) to avoid conflicts of interest, and the CNV is given the power to dictate rules and regulations for transparency, granting greater legal security.
The regulatory decree is signed by Mauricio Macri, Marcos Peña, Francisco Cabrera and Luis Caputo.
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