Executive Launches Four Public Consultations on Bonds and Securities
30 abril 2020

The Executive Branch launched four public consultations of relevance to the financial sector on April 30. Firstly, the Banco de la República (BanRep) presented a draft to regulate temporary liquidity support and another on operations with credit-related securities. Both will be open for comments until May 5, 2020. At the same time, the Financial Regulation Unit (URF, in Spanish) published a draft decree accompanied by a technical document aimed at regulating the issue of shares in the stock market. These regulations will be open for comments until May 21, 2020. Finally, the Ministry of Finance submitted a draft decree to regulate the issue of solidarity securities. Comments on this regulation can be sent until May 7, 2020. 

The key points of these regulations are as follows:

  • BanRep consultation on securities transactions. The idea is to include securities with credit content from portfolio operations (promissory notes) as part of the set of instruments eligible for temporary expansion operations for use by credit institutions. Those interested may send their comments by clicking here
  • BanRep consultation on transitional liquidity support. This seeks to establish the terms and conditions of the Contingency Plan for transitional liquidity support through implementation with credit content securities, representative of physical portfolio operations. Those interested may send their comments by clicking here
  • URF consultation on rules for issuance on the stock market. These are guidelines for granting guarantees, maximum financing amounts, digital opening procedures and the transition regime for these types of operations. Those interested may send their comments to [email protected], [email protected] and [email protected]
  • Ministry of Finance Consultation on Solidarity Securities. The measure is designed to regulate Decree 562 of 2020, providing for the creation of a temporary mandatory investment in public debt securities for private banks called Solidarity Securities (TDS, in Spanish). It establishes the financial characteristics and conditions for the issuance of TDS, as well as the amount of mandatory investment for credit institutions. Those interested may send their comments by clicking here.

In other news, the First Committee of the House of Representatives began its debate of the Habeas Data Bill, also known as the ‘clean slate at Credit Risk Centers’. Although the legislators were unable to reach the agreements necessary to issue an opinion on the regulation, they are expected to do so next week. Finance Minister Alberto Carrasquilla told the Senate that the government intends to declare a second economic emergency next week in order to adopt new measures to address the crisis created by the COVID-19 pandemic.