New Collateral Registry Framework Enhances Credit Access for Belizean Businesses
- Economy, Banking & Finance
- December 10, 2024
- No Comment
- 5641
In a significant step toward financial inclusion and economic growth, the Government of Belize has enacted the Moveable Property Secured Transactions Legislation. This landmark legislation modernizes the country’s financial system by allowing movable assets such as inventory, equipment, and livestock to be used as collateral for loans. It also introduces the Secured Transactions and Collateral Registry (STCR). It also aims to streamline the process of securing loans using movable assets. The government says it will enhance credit access for micro, small, and medium enterprises (MSMEs) that may not have access to traditional forms of collateral like real estate. According to the Financial Services Commission, a key feature of the legislation is the establishment of the STCR, which provides an electronic, searchable registry for borrowers and lenders to record and track security interests in movable assets. The FSC added that it increases transparency, reduces risk, and ensures fairness in financial transactions. The new framework replaces the old Bill of Sale Act, which previously governed the registration of movable collateral.