Fovial can now securitize future income. Now you can get a loan for your work. / record.
As of January 2023, the Board of the Road Maintenance Fund (Fovial) will not allow loans with national or international financial institutions due to the effectiveness of reforms to the Fovial Law approved by the Legislative Assembly on 22 December. You can already manage. 2022.
The amendment was published on the Official Gazette homepage on December 23, 2022, and will enter into force eight days after its publication, so it is already authorized to take such measures from this month of January.
The reform would extend the powers of Fovial’s Board of Directors, established in Article 21, to “approve the signing of loans with international bilateral financial institutions, domestic or international financial institutions, and friendly countries.” It consisted of adding
Added the ability to invest the earned resources in financial instruments or credit securities.
According to the reform, “resources received by the Road Maintenance Fund under any name may not be short-, medium-, or long-term credits issued by entities, financial instruments, or entities duly authorized to carry out these operations.” securities”, Section 29 of the Act.
Since August 2012, the Fovial Act has given powers to securitize up to 20% of future flows. On July 20, 2021, the Legislative Assembly approved an increase in the commitment percentage to 50% of his future earnings.
On December 7, 2021, the agents authorized Fovial to issue up to $1 billion in credit notes or securities.
Meanwhile, Fovial plans to allocate $40 million in its 2023 budget for debt and foreign loans for securitization.
In 2007, $60 million in loans were obtained from the Central American Bank for Economic Integration (CABEI), increased to a total of $92.605 million in June 2008. And in 2013, he securitized $125 million in three tranches to fund projects such as overpasses. Outstanding debt as of November was $169,829,016.
Source: Diario Elmundo