Work commences on implementation Personal Property Securities Act
30 October, 2018, 7:00 am
WORK has commenced on the implementation of the Personal Property Securities Act 2017.
The legislation allows people and entities to pledge their personal property to secure finance and for lenders to secure their interests in personal property.
It aims to increase credit improvement by mortgaging personal, movable property, and ultimately expanding the collateralization of fixed assets such as land and buildings.
It is also particularly directed at micro-small and medium enterprises (MSME) through the establishment of an online registry.
A concept backed by the Reserve Bank of Fiji (RBF), the central bank commenced work on the legislation with its partners Australian and New Zealand governments along with the Asian Development Bank.
The technical work will be completed through the ADB Private Sector Development Initiative (PSDI), a technical assistance facility co-financed by the governments of Australia and New Zealand and ADB.
According to a statement from the central bank, the implementation requires the design and build of an online registry which is planned for rollout in 2019.
Once the registry is activated, lenders will be able to quickly and conveniently secure their claim on non-land assets pledged by borrowers as collateral.
“Introducing a personal property securities registry will complete a new framework for lending that is safe, convenient, and sustainable,” said RBF Governor Ariff Ali.
“Making movable collateral viable for lenders will result in the extension of credit to new categories of borrowers, help bridge the micro, small and medium enterprises finance gap and open up new opportunities for many alternative forms of credit.”
Governor Ali also thanked and acknowledged the support received from the ADB and the Australian and New Zealand Governments throughout the implementation process.