New MIPYMES Law Will Promote Competitiveness

On Tuesday, the Dominican Chamber of Deputies swore into law the draft bill for Development of Small and Medium Businesses (PyMES), one of the projects designed as part of the National Plan for Systemic Competitiveness which will help improve the levels of competitiveness among the country’s PyMES.

The new legislation allows for the PyMES to have access to financing through FOMIPYME following a process that evaluates their potential profit levels and the viability of the projects they intend to undertake.

Andrés van der Horst Álvarez, Executive Director of the National Competitiveness Council (CNC) and Secretary of State, said the initiative seeks to promote comprehensive development of the country´s micro, small and medium-sized businesses now that these companies have a strong capacity to generate jobs and wealth through their development and insertion in international markets.

The new legislation allows for the PyMES to have access to financing through FOMIPYME following a process that evaluates their potential profit levels and the viability of the projects they intend to undertake. The Fund will function like a first and second tier bank and will be administered by the new National PROMIPYME Council which will be in charge of the promotion of new markets and creation of a larger number of micro, small and medium-sized companies (MIPYMES), according to the CNC.

Mr. Van der Horst Álvarez said the PyMES Development law “forms an integral part of the regulatory framework necessary to improve the business climate in our country and to create the bases to successfully compete in the evermore demanding global economy.” This new legislation was designed by the National Competitiveness Council (CNC) together with CODOPYME As well as the major participants in the sector. The legislation forms part of the projects being carried out under the National Plan for Systemic Competitiveness as presented to the country by President Leonel Fernández on March 21st of last year.

“These initiatives have been socialized through a process of open dialogue and enjoy the support of the private sector and civil society. They incorporate agile, legal and flexible administrative mechanisms which allow for increased competitiveness and development among the national and international companies that operate in our territory,” said. Van der Horst Álvarez.

Van der Horst Álvarez thanked the senators and deputies who gave their support to the passage of this piece of legislation “which gives the country the necessary legal tools to improve our levels of competitiveness.”

He also praised the adoption into law of the Commercial Arbitration bill, another piece of legislation that promotes the modernization of the country´s business climate. This legislation is in line with the legal initiatives the National Competitiveness Council has been supporting, in that it responds to the need to recognize the alternative resolution of conflicts under national law while supporting a better use of international commerce agreements.

The modern legislation is equally in accordance with the best international practices in that it offers a quick and definitive resolution to commercial conflicts while recognizing the role of the arbitration institutions and assistance of corresponding tribunals or courts.

“Commercial arbitration is a transcendental figure in terms of commercial rights. With the adoption of this new law, we are strengthening the national systems for resolution conflict in the face of challenges presented by the commercial opening,” concluded Mr. van der Horst Álvarez.