Actualidad Bolivia

Access to credit: non-conventional collateral

Asfi Circular 287/2015, 6th March 2015

This Circular was issued by the Financial System Authority (Asfi) on 6th March 2015, in order to establish the criteria and requirements to be taken into consideration when a borrower is providing guarantees to secure their application for a loan.

The regulation establishes which non-conventional collateral are acceptable to finance production activities, as well as the criteria which should be applied when assessing them:

  1. Guarantee Fund;
  2. Agricultural insurance;
  3. Documents proving ownership of real property;
  4. Assets not covered by the property register;
  5. Contract or binding document of future sale;
  6. Guarantees or certifications from community institutions or local organisations;
  7. Product stock;
  8. Livestock;
  9. Intellectual property patent.

This list of collateral notwithstanding, the Regulation considers the borrower’s capacity to pay is the crucial factor in originating a loan. For the financial institution such security will only be of secondary importance.

One of the principal innovations in this regulation is the security relating to the "creations of the human mind" (intellectual property patent). This means that a borrower’s invention, literary or artistic work, symbol, etc, can serve as a guarantee when accessing credit, provided that it is registered in the National Property Service (Senapi).