Notice and Licensing Procedure for Microfinance Institutions

The BRH notifies all institutions offering microcredit or microfinance (companies, associations, foundations, NGOs, nonprofit organizations) that they must comply with the decree of June 5, 2020 on the organization and operation of microfinance institutions, published in the official gazette on August 25, 2020. Licensing applications are received from December 15, 2020. The attached procedure sets the conditions and the file. A microcredit company needs an endowment fund or minimum capital of HTG 25 million and a microfinance company needs HTG 50 million, under article 10 of the decree.

Applicants must name the reference shareholders who hold at least one third plus one share of capital and voting rights, and at least one must commit formally to take part in directing the company and to give operational and financial support. Directors and managers must meet standards of integrity, competence and experience. The applicant must describe its internal control, risk management, compliance, internal audit, information system, data retention, accounting and business continuity arrangements, and a list of documents to submit follows.