FOR IMMEDIATE RELEASE
Date: December 19, 2024
Government enacts Security Interest in Movable Property Bill 2024, paving the way for easier access to credit
Minister of Tourism, Industry, and Commerce, Hon. Oneidge Walrond, presented the second and third reading of the Security Interest in Movable Property Bill 2024 in Parliament on Wednesday. This important legislation aims to address longstanding challenges in Guyana’s credit system, reaffirming the government’s commitment to improving financial accessibility and supporting small and medium-sized enterprises (SMEs) and vulnerable groups.
The Bill seeks to establish a modern, comprehensive framework for secured transactions involving movable property. This move is critical for creating a more inclusive and efficient financial system in Guyana. Historically, the requirement for immovable property, such as land, as collateral made it extremely difficult for low-income individuals and businesses to obtain credit. Recognising these challenges, the government has prioritised the creation of this Bill to transform the lending environment and enable economic opportunities for all.
Minister Walrond noted that the lack of a centralised, efficient system for securing transactions involving movable assets has contributed to delays, inefficiencies, and exclusion from formal credit markets. The proposed legislation addresses these issues by:
1.Simplifying the use of movable assets, such as equipment, inventory, crops, intellectual property, and receivables, as collateral.
2.Streamlining the registration and enforcement process by establishing an Electronic Collateral Registry to replace outdated manual systems.
3.Increasing credit access for SMEs, women entrepreneurs, and individuals without immovable property, fostering financial inclusion and economic empowerment.
She emphasised the government’s focus on supporting vulnerable groups, including women-owned businesses, and strengthening financial infrastructure to enhance economic stability. Examples from countries like Ghana and Jamaica demonstrate the transformative impact of similar frameworks, which have significantly boosted access to credit for underserved populations.
“The lack of immovable property to secure credit will no longer be an insurmountable barrier to the dreams and aspirations of ordinary Guyanese people,” she told the House.
The Security Interest in Movable Property Bill 2024 is the result of extensive nationwide consultations with stakeholders. In addition, the government has established an Electronic Collateral Registry, housed at the Commercial Registry to facilitate its implementation. This initiative was made possible through technical and financial support provided by the Compete Caribbean Partnership Facility (CCPF) and implemented by the Inter-American Development Bank (IDB). The government remains committed to collaborating with its development partners, including the United States Agency for International Development (USAID), to fully operationalise a comprehensive Secured Transactions System in Guyana.
The Security Interest in Movable Property Bill is set to redefine credit access in Guyana, marking a pivotal moment in the nation’s economic development.
For More Information, Contact:
Commercial Registry
Commercial Registrar
Email: commerce.registrar@dcra.gov.gy | Phone: 225-4374
Ministry of Tourism, Industry, and Commerce
Director of Commerce
Email: scameron@mintic.gov.gy | Phone: 226-2505 Ext:216
