Gov't working to modernise secured transactions framework to assist MSMEs

Monique Gibbs, Chief Technical Director in the Ministry of Industry and Commerce, has said the Government is working to modernise the secured transactions framework in order to expand the scope of assets that operators of micro, small and medium-sized enterprises (MSMEs) can use as collateral for loans.
She said there is a need to balance the preferred traditional forms of  collateral such as motor vehicles and real estate, which MSME's often do not have, with movable assets such as accounts receivables, inventory, machinery and equipment.
The Ministry has engaged International Finance Corporation to provide advisory services to support the development of an action plan for enhancing the secured transactions regime in Jamaica.
Miss Gibbs noted that steps have been taken to enhance the National Personal Property Registry, the Collateral Registry and its legal framework, which allow borrowers to pledge movable assets as collateral and help to foster transparency between creditors and borrowers.  

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