THE people of Palau can now access business loans from commercial banks using moveable assets as collateral following the newly funded Secured Transactions Registry by the Asian Development Bank.
The registry would contribute towards the government of Palau's efforts to improve efficiency and ease of doing business in the country.
"The registry will simplify all aspects of loan processing for banks," said Semdiu Decherong, registrar of the Secured Transactions Registry in a statement.
Customers would be able to secure loans to start or grow a business using moveable assets such as boats or farm equipment, says Andrea Iffland, regional director of ADB's Pacific Liaison and Co-ordination Office in Sydney Australia.
"The registry is also a reliable, transparent record of transactions which will help prevent conflict among creditors."
According to the ADB, the registry would facilitate the administration of the new Secured Transactions Act which was passed in May last year.
The Act was introduced as part of the Palau government's plan to boost business development by modernising business laws and increasing access to finance opportunities.
"Getting adequate access to financial services is a major constraint to economic growth in Palau and the rest of the Pacific region.
"Other ADB supported secured transactions reform initiatives have been implemented in Marshall Islands, Solomon Islands, Federated States of Micronesia, Tonga and Vanuatu with Papua New Guinea to follow later in 2013.
"The Financial Institutions Commission will be the contact point for businesses and users of the registry."
Launched by the Palau Financial Institutions Commission last week, the Secured Transactions Registry is an online facility which may be used by lenders to register interests in collateral and allow them to check if money is owed on collateral presented.