Business sector stakeholders briefed on draft moveable property bill

April 11, 2018

DPI, Wednesday, April 11, 2018

Key stakeholders in the business sector were today sensitized on the regime and consultation of the draft moveable property bill during a workshop hosted by the Ministry of Business, at the Marriott Hotel.

[from left] Minister of Business, Dominic Gaskin, and Minister within the Ministry of Finance, Jaipaul Sharma at the Secure Transaction Regime Workshop.

The Inter-America Development Bank (IDB) funded project aims to allow the use of moveable property as collateral when seeking to access finance. Minister of Business, Dominic Gaskin said the exercise is intended to review and inform stakeholders on the draft moveable property bill.

“A consultant has been engaged to look at the legislation and he is presenting a draft today. Some stakeholders are present, many of whom are lawyers to actually look at the draft and make comments and recommendations on how to improve it; and how to make it more suitable and appropriate for our situation.”

The draft bill on movable property aims to reduce the lack of access to finance, especially for persons without immovable properties. Minister Gaskin explained, “this piece of legislation allows persons to borrow using other forms of moveable collateral, such as cars, a fridge, livestock, crops if you’re a farmer and various types of assets. It really broadens the base of assets that can be used to secure loans.”

IDB Legal Consultant, Tom Johnson presented the official draft bill to stakeholders of various trade enterprises, professional institutions and members of the commercial deeds registry. Johnson had conducted his first exploratory mission in Guyana on January 15, 2018.

A breakout session on the draft bill for bank and non-bank financial agencies is expected to be held at the IBD office on April 12.

The Secure Traction Regime project is one that builds on an earlier government initiative from 2016. It will see the establishment of a modern electronic registry for registering movable property; the training of staff; improved levels of security, better risk management, reduced traction cost and time when conducting businesses.