i. overview ii. iii. iv. · uncitral international colloquium on microfinance, creating an enabling...

UNCITRAL International Colloquium on Microfinance,

creating an enabling legal environment for microbusiness

Vienna, 16-18 January 2013

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Provisional Programme

16 January (9:30 – 17:00)

8:00-9:30 Welcome & Registration 9:30-9:45 Welcome address – Mr. Renaud Sorieul, The Secretary, UNCITRAL

09:45-12:00

An enabling environment for microbusiness and the rule of law

Moderator: Mr. Timothy Lemay/UNCITRAL Secretariat

• Mr. Luis Vélez Cabrera/Superintendencia de Sociedades (Colombia)

• Prof. Maria Chiara Malaguti/Universitá Cattolica del Sacro Cuore (Italy)

• Prof. Soogeun Oh/Ewha Womans University (Republic of Korea)

• Ms. Vanesa Sanchez/Economist Intelligence Unit (United Kindgom)

• Mr. Alex Ivančo/Ministry of Trade and Industry (Czech Republic)

• Mr. Michael J. Dennis/Office of the Legal Adviser (United States)

Note: After marking the distinction between public regulation and private law aspects of

microfinance (looking back to the UNCITRAL Colloquium in January 2011), the session will

provide an overview of the distinctive features of an enabling legal environment for microbusiness

and place them in the context of UNCITRAL’s mandate and activities. In the discussion, current

predominant trends in microfinance will also be highlighted.

12:00-12-30 Open Discussion 12:30-14:00 Lunch

14:00-16:00

Facilitate incorporation and registration of potential micro-borrowers: creating an enabling legal environment for micro, small and medium enterprises

I. Overview II. The “rule of law” III. Simplified business forms, innovation and economic growth IV. Experiences across different jurisdictions

Moderator: Mr. Wade Channell/ United States Agency for International Development (USAID)

• Prof. Francisco Satiro/Universidade de São Paulo (Brazil)

• Prof. Francisco Reyes/ Pontificia Universidad Javeriana (Colombia)

• Prof. Erik Vermeulen/Tilburg University (The Netherlands) Note: A large portion, perhaps the majority, of the world’s micro entrepreneurs operate informally,

making it difficult for them to access finance and markets as well as business incentives. They are

often unable to create a legal identity, limit their liability, associate with other entrepreneurs to

integrate capital, access financial mechanisms to obtain liquidity, extend credit; contract with

employees, suppliers and customers, or access export opportunities. And many times, national

legislative reform in this area applies business approaches from the past which lack the flexibility to

cope with the new economic realities. Mindful of this impasse, the session will discuss new

simplified business forms and the relevant legislation to support them, as well as provide examples

of countries that have already developed a legislative framework on these matters.

16:00-16:15 Short break 16:15-17:00 Open Discussion

17 January (9:30 – 17:00)

09:30-11:30 Facilitate incorporation and registration of potential micro-borrowers: simplified business forms in the context of microfinance




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I. The importance of simplified incorporation a. Relaxed incorporation requirements and informality b. Limited liability c. Capital structure

II. Freedom of contract and shareholder agreements III. Conflict resolution and third party protection

Moderator: Prof. Erik Vermeulen/Tilburg University (The Netherlands)

• Ms. Priyanka Priydershini/Tilburg University (The Netherlands)

• Mr. José M. Mendoza/Superintendencia de Sociedades (Colombia)

• Prof. Philippe Delebecque/Université de Paris I, Pantheon-Sorbonne (France)

• Prof. Sofia Vale/Universidade Agostinho Neto (Angola)

• Dr. Leif Böttcher/Federal Ministry of Justice (Germany) Note: This session will continue the discussion of the previous afternoon, focusing on various

distinctive features of the simplified business entities.

11:30-11:45 Break 11:45-12:30 Open Discussion 12:30-14:00 Lunch

14:00-15:15

Setting up an effective alternative dispute resolution mechanism for micro-entrepreneurs

Moderator: Prof. Giuditta Cordero Moss/University of Oslo (Norway)

• Mr. Daniel Magraw/Center for International Environmental Law (United States)

• Ms. Suzanne Roach/Financial Services Ombudsman (Trinidad and Tobago)

• Prof. Yoshihisa Hayakawa/Rikkyo University (Japan)

• Mr. Felipe Cuberos/prietocarrizosa (Colombia)

Note: An integral component of financial services client protection, the provision of effective,

alternative dispute resolution (ADR) mechanisms for micro entrepreneurs, is often unavailable. The

access to justice gap for the poor is so large that new, innovative and more efficient dispute

resolution systems should be developed which are tailored to the low incomes, literacy levels,

geographical and cultural constraints of the poor. The session will analyse the sorts of claims arising

in the context of microfinance; discuss the features an ADR system should have to operate in such a

context and provide examples of countries where ADR systems in the microfinance sector exist,

their achievements and challenges.

15:15-15:30 Open Discussion 15:30-15:45 Break

15:45-16:45

An enabling legal environment for mobile payments and peer-to-peer networks

Moderator: Ms. Irene Philippi/Department of Treasury (United States)

• Ms. Narda Sotomayor/Superintendencia de Banca, Seguros y AFP (Peru)

• Mr. Brian Muthiora/ Safaricom Limited (Kenya)

• Mr. Jayantha Fernando/ICTA (Sri Lanka)

• Ms. Monica Harutyunyan/Consultative Group to Assist the Poor (CGAP) Note: Progress in electronic communications has had significant influence, including in the field of

payment systems. Growth in this sector has been very rapid, particularly in developing countries,

where large percentages of the population are unbanked. New devices for money transfer and

provision of financial services (such as mobiles, internet or stored-value devices) as well as the

entry of new operators into the market have profoundly modified both the regulatory and the legal

landscape. The session will discuss the main legal issues surrounding electronic transfers (of which

m-payments are a subset), in particular focusing on the role of service providers and the




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apportioning of the risks between providers and clients.

16:45-17:00 Open Discussion

18 January (9:30 – 17:00)

09:30-11:30

Legal issues relating to access to credit for micro-business, small and medium-sized enterprises: I. Cross-cutting themes:

a. Transparency and fairness: facilitating the use of and ensuring transparency and fairness in lending, including secured lending, to microenterprises and small enterprises

b. Credit bureaus c. Branchless/Mobile Banking

II. Secured credit in the context of microfinance: valuation of collateral, registration of a security interest, fair and transparent enforcement of a security interest, relevant legal framework

Moderator: Mr. Spyridon BAZINAS/UNCITRAL Secretariat

• Ms. Azish Filabi/ Federal Reserve Bank of New York / New York State Bar Association, International Section (United States)

• Mr. Fabrizio Fraboni/International Finance Corporation (IFC)

• Mr. Marek Dubovec/National Law Center for Inter-American Free Trade (United States)

• Prof. Maria del Pilar Bonilla Robles/ Universidad Francisco Marroquín (Guatemala)

• Mr. José Maria Garrido/World Bank

• Mr. Chuck Waterfield/Microfinance Transparency (United States)

Note: In many countries, establishing a fair, reliable and transparent lending process for micro-

borrowers implies multiple challenges, including the lack of traditional sources of client

information, the transparency of financial products and services, the use of agent banking. When

microfinance involves secured lending, in the context of which a micro business may be utilizing

essential household items to secure loans for micro trade as well as consumption purposes, the

nature of the borrower and the collateral may also pose challenges. For instance, valuation of

collateral may not be easy; registration of security interests creates particular difficulties;

enforcement and collection in the event of borrower default raises particular issues. The session

will provide due attention to MFIs often working in an uncharted legal territory, without

appropriate guidelines regarding which laws are applicable to lending transactions with

economically vulnerable borrowers. The application of secured transaction law in a microfinance

context will be in focus, with particular reference to the UNCITRAL Legislative Guide on

Secured Transactions.

11:30-11:45 Break 11:45-12:30 Open Discussion 12:30-14:00 Lunch

14:00-15:00

Establishing a legal framework that ensures orderly insolvency and winding up processes I. Microbusiness insolvency and the insolvency of natural persons II. Reinvigoration and reinsertion of the micro entrepreneur debtor in

microbusiness: discharge and “fresh start” III. Simplified alternatives to insolvency procedures for micro entrepreneurs IV. Payments of claims:




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a. Through liquidation of the estate b. Through a payment plan

Moderator: Ms. Diana Talero Castro/ Superintendencia de Sociedades (Colombia)

• Mr. Luis Manuel Meján/ Haynes & Boone (Mexico)

• Mr. Andres Federico Martinez/ International Finance Corporation (IFC)

• Prof. Andre Boraine/University of Pretoria (South Africa) Note: Micro-, small- and medium- sized enterprises account for significant portions of the business

activities of many economies. Resolving the financial difficulties of such enterprises may involve

such significant challenges that walking away is the simplest and most popular option: commercial

insolvency regimes are typically too complex and expensive for such small enterprises; consumer

insolvency regimes may not exist or take insufficient account of the commercial nature of the debt;

and debt counseling and related services may not go far enough. The session will discuss issues and

options of legal frameworks that deal with insolvency and winding up processes concerning micro

and small entrepreneurs.

15:00–15:30 Open Discussion 15:30-15:45 Break

15:45-17:00

Concluding discussion The way forward

Moderator: Mr. Timothy Lemay /UNCITRAL Secretariat

Note: Taking stock of the presentations and discussions of the three days, this last session will

outline the key issues of a favourable environment for micro, small and medium-sized enterprises

which UNCITRAL may wish to consider for future legislative work.

i. overview ii. iii. iv. · uncitral international colloquium on microfinance, creating an enabling...

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