BTN News: The Association of Multiple Banks of the Dominican Republic (ABA) has extended congratulations to the newly inaugurated members of the National Congress, which was formally installed on August 16th. At the same time, the ABA emphasized its commitment to continue contributing to the ongoing discussions of significant legislative initiatives that are being debated both in the Chamber of Deputies and the Senate. These legislative initiatives are particularly crucial as they have a direct impact on the national financial landscape.
The ABA expressed optimism that the new legislators would prioritize the review and advancement of key legislative projects that hold the potential to enhance various financial aspects, including financing instruments, data protection, precautionary measures like retentive seizures, and cybersecurity. These areas are increasingly vital as the country navigates through complex economic challenges and the growing demands of the digital era.
Among the pressing legislative priorities, the ABA highlighted the importance of revisiting the draft Law on Leasing, a financial tool that allows businesses, particularly small and medium-sized enterprises (SMEs), to utilize essential assets without the immediate need for substantial capital investment. This leasing mechanism provides the opportunity for businesses to eventually acquire these assets at their residual value once the lease term concludes, offering a flexible and financially viable path for business growth and expansion.
The ABA underscored that this legislation would be instrumental in driving the development of SMEs, much like the proposed Law on Factoring, Discount, and Commercial Assignment of Credit Rights, which is also under consideration in the Senate. This law seeks to establish a comprehensive legal framework that facilitates the advance collection of credit sales, thereby improving liquidity and payment capacities for businesses. Enhanced liquidity is crucial for small and medium-sized businesses as it allows them to manage their cash flow more effectively and invest in growth opportunities.
Another significant legislative effort that the ABA brought to attention is the reintroduction of the draft Law on Reciprocal Guarantee Societies. This law, originally proposed in 2015 and reintroduced this year, aims to establish a model of shared risk between the public and private sectors. Such a model would enable SMEs to secure more favorable financial terms from banks, including better interest rates and extended repayment periods. The ABA sees this as a crucial step toward strengthening the financial stability of SMEs and fostering a more inclusive economic environment.
The banking association also stressed the importance of the proposed Law on Retentive Seizure, which is currently being debated in the Senate. This law is designed to protect the dignity and rights of individuals while preventing any potential misuse or distortion of legal procedures related to asset seizure. The ABA believes that this legislation is essential to ensure that the legal framework operates fairly and justly, particularly in the context of financial disputes.
In the Chamber of Deputies, attention is being given to the draft Law on Cybersecurity Management in the Dominican Republic. The ABA emphasized the critical need for this legislation, given the rapid advancements in technology and the increasing risks associated with interconnected systems. A robust cybersecurity framework is necessary to effectively counter the growing threats in this domain, ensuring the safety and security of digital financial transactions and data.
Additionally, the ABA pointed out the importance of the draft Law against Cybercrime, which is also under review in the Chamber of Deputies. This law aims to update the current legal framework to address the realities of global cybercrime, including the classification and punishment of new high-tech crimes. As cyber threats continue to evolve, it is imperative that the legal system adapts to these changes to protect both individuals and businesses from cyber-related offenses.
The ABA reiterated that the banking sector remains in close communication with legislative bodies to provide constructive and timely input on these crucial projects. The goal is to support the growth of productive sectors, safeguard user rights, and foster a secure digital environment for financial operations. The association remains committed to contributing to the legislative process in a way that aligns with the broader objective of national economic progress.
