Easier access to loans for small, medium scale enterprises

– After with passage of new bill

The new Security Interests in Moveable Property Bill 2024 was passed Wednesday evening in the National Assembly, allowing small and medium-scale enterprises (SMEs) to easily access loans.

This a critical piece of legislation that represents the government’s commitment to transforming the nation’s economic landscape by fostering financial inclusion and empowering SMEs.

During her presentation, Minister of Tourism, Industry and Commerce, Oneidge Walrond, said the bill will resolve the hesitancy of small business owners being able to access loans due to the insufficiency of immovable properties.

“The bill simplifies the process of using moveable assets as collateral for secured credit, making it more accessible to a wider range of businesses…These include tangible assets like equipment, inventory, crops, livestock and vehicles, as well as intangible assets like receivables intellectual properties and negotiable instruments,” the minister explained.

This new legislation creates more opportunities for financing and ensures consistency, transparency and legal certainty in credit markets by streamlining a secure transaction system.

It consolidates previous mechanisms for securing credit such as bills of sale, finance leases and pledges of goods. All these mechanisms are contained in a single legal device called “security agreements.”

A security agreement is a consensual agreement that secures payment or performance of obligations. It eliminates redundancies, reduces administrative burdens and ensures a coherent legal framework for secure transactions in the country.

It must be noted that if an asset is jointly owned both owners must sign this agreement.

The registration of the moveable property is managed through an electronic track register maintained by the registrar.

According to the minister, the Security Interest in Moveable Property 2024 will bring a safe change in the commercial industry.

“It will remove key constraints that have confronted thousands of Guyanese citizens and small businesses. It opens up avenues of credit previously unavailable to them,” Minister Walrond noted.

Moreover, Senior Minister in the Office of the President with responsibility for Finance and Public Service, Dr Ashni Singh also contributed to the bill.

Dr Singh noted that the bill will add to the series of legislations already put forward by the government to support SMEs.

“This Security Interest in Moveable Property 2024 is a most commendable and most welcomed addition to our legal architecture and financial system and I commend my colleague for bringing it to parliament on behalf of our government,” the senior minister noted.

According to him, Guyana’s bank deposits grew exponentially over the years due to the many financial initiatives that the government implemented.

He pointed out that between June 2022 to June 2024, the commercial bank deposit grew by a staggering 7.9 per cent.

Meanwhile, the bill received unanimous support from APNU+AFC Opposition Member of Parliament, Khemraj Ramjattan. He commended the government for the “well put together” bill, which he believes will assist upcoming entrepreneurs.