Published legislation and draft legislation - Peru

CRECER Fund to be set up

Legislative Decree 1399

Legislative Decree 1399 was published in September, creating the CRECER Fund, to finance, provide collateral and similar guarantees and other financial products. The purpose is to support the productive and entrepreneurial development of micro, small and medium-sized enterprises and export companies, because of their major impact on the Peruvian economy.

The Fund will be managed by Corporación Financiera de Desarrollo, S.A. (COFIDE); the micro, small and medium-sized enterprises covered in the TUO in the Law to Support Productive Development and Entrepreneurial Growth will be the beneficiaries, as well as the export firms referenced in the Urgent Decree 050/2002 and the Supreme Decree 171-2002-EF.

The CRECER Fund has been set up to develop and implement the financial instruments/activities listed below, using companies that are regulated and/or authorized by the Banking & Insurance Authority or the Securities Market Authority:

  1. The granting of loans to acquire fixed assets and/or working capital.
  2. The granting of collateral and/or cover to guarantee credits originated by companies in the financial system, including when these have been transferred in any form to independent asset managers.
  3. The re-bonding of transactions carried out by bonding and collateral companies, and by others authorized to carry out bonding transactions as established in the regulation.
  4. The granting of credits, collateral and/or cover for factoring transactions or for discounting credit instruments.
  5. Investment in independent management companies, shares in which are placed through public offerings; as well as granting guarantees and cover for these equity stakes. On an exceptional basis, other placing mechanisms can be considered in the regulation, once they have been underwritten by the entity proposing the investment.
  6. Other financial instruments set out in the CRECER Fund legislation.

The creation of the CRECER Fund also consolidates the following funds: (i) The MSME Fund; (ii) The Fund to support Small & Medium-sized Enterprises; (iii) The Enterprise Guarantee Fund; (iv) The “FORPO” Fund for the Productive Reinforcement of SMEs.

The CRECER Fund will be set up for 30 years, starting from the day after the law is published.