By Josiah Williams
December 19, 2024
The Security Interests in Movable Property Bill has been passed in Guyana, aiming to simplify access to financing for small businesses and individuals by allowing movable assets to be used as collateral for loans.
The bill, introduced by the Minister of Tourism, Industry and Commerce, Oneidge Walrond, provides a modern legal framework that enables the creation, registration, and enforcement of security interests over movable assets.
This is a significant shift, as previous legislation only permitted immovable assets like land or real estate to be used for securing loans.
Under the new bill, movable assets such as equipment, vehicles, inventory, livestock, and even intangible assets like intellectual property and receivables can now qualify as collateral.
To support this change, the bill also establishes a national digital registry to record security interests, enhancing transparency and allowing banks and lenders to quickly verify if a movable asset has already been pledged.
The legislation is expected to improve the business climate in Guyana by increasing the availability of financing for Small and Medium Enterprises (SMEs).
By facilitating easier access to credit, the bill aims to foster entrepreneurship, innovation, and economic diversification in the country.
This development is seen as a crucial step in strengthening Guyana’s financial infrastructure and supporting the growth of small businesses, particularly in the agriculture, manufacturing, and service sectors.