Secure Transaction Regime project to make accessing finance easier in 2018

DPI, Guyana, Monday, January 29, 2018

With aims to make access to finance easier in 2018, the Ministry of Business in collaboration with the Legal Affairs Ministry is embarking on a Secure Transaction Regime project.

According to Minister of Business, Dominic Gaskin, the project will allow for easier access to financing, using movable property as collateral. He noted the ministries are still working on having the legislation passed sometime this year.

Hon. Dominic-Gaskin, Minister of Business.

Minister Gaskin explained, once the legislation is approved, persons will then be able to use movable properties such as fridges, televisions and stereo sets as collateral for credit when accessing finance.

“What we are trying to do is make things easier for persons to borrow money and invest in businesses…it will take some time to transform an entire nation…but we will continue to work so that Guyana becomes a place where credit is easier for businesses to get,” the Minster said.

To this end, Minster Gaskin is encouraging persons and businesses to engage in more formal purchases when conducting transactions. He said formal documents, along with the moveable property, will be required when accessing finance.

He said once the project starts, the ministry will roll out a sensitization campaign so persons across the regions can understand what the project provides and how they can benefit from it. He noted the Consumer Protection Department and the Consumer Affairs Commission will also engage in the public awareness campaigns.

According to the Business Minister, the Secure Traction Regime project is one that builds on an earlier government initiative from 2016.

He added that in 2016, the government amended the Credit Reporting Act to allow lending institutions to report to the Credit Bureau on transactions without seeking authorisation from customers. The amendment allowed the Credit Bureau to collect data from a number of credit providers, including banks and utility companies.

The Secure Transaction Regime 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.

 

By: Crystal Stoll

 

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