In Costa Rica
On November 15, the new Law for the Dynamization of the Development Banking System (Law 10522) was published in Scope No. 185 of La Gaceta No. 215. Its purpose is to reform the Law of the Development Banking System and other laws within the scope of application of the Development Banking System (SBD) to dynamize the placement of SBD resources.
The main changes include a modification to the list of beneficiaries of the SBD: a) associative models of the social solidarity economy are included, organizations of this nature, profit or non-profit, that have a viable productive project and meet the parameters of micro, small or medium business model; b) microcredit beneficiaries are modified, which will now have a maximum amount of financing requirement of 50 salaries, instead of the previous amount of 40, attending to the reality of the demand for credit; c) medium-sized companies and medium-sized agricultural and livestock producers may be beneficiaries, provided they meet the criteria and conditions established by the Governing Council, with priority to those with a high impact on employment, environmental sustainability, territorial development, technological development, and productive linkages. In addition, a new article is included to provide access to financing for cluster models, a concept that will be defined in the regulations.
Another novelty of this law is that the National Development Fund (Fonade) may participate with capital contributions, purchase of shares or debt, and guarantees, among other things, in relation to issuers, schemes, and investment funds, whether public offerings (authorized by SUGEVAL) or private offerings.
Undoubtedly, the most relevant change for private banks is the amendment to Article 59 of the Organic Law of the National Banking System concerning the so-called “toll†and the voluntary integration of such private banks into the SBD. According to said article, private banks will only be able to capture current account deposits if they meet any of the following requirements:
(i) Permanently maintain a balance of loans in the Development Credit Fund equivalent to 17% of their total deposits at terms of thirty days or less, both in local and foreign currency, after deducting the corresponding reserve requirement. If all deposits are made in local currency, the percentage will be only fifteen percent (15%) on the same calculation basis.
Or they may opt for clause ii), where with the present reform, they now have two options:
(ii) Maintain a balance equivalent to at least 10% of their total deposits at thirty days or less, after deducting the reserve requirement, in operations directed to SBD beneficiaries and install at least four agencies or branches distributed in the Chorotega, Central Pacific, Brunca, Huetar Atlántico and Huetar Norte regions, or maintain an equivalent balance of at least 12% of its deposits, at thirty days or less, after deducting the reserve requirement, in operations directed to beneficiaries of the SBD, if the impossibility of maintaining branches is technically justified.
The Executive Branch must issue an executive regulation to this Law within a term no longer than six months from its publication.
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