By Vasinatta Yama, EM TV – Port Moresby
Treasury Minister, Patrick Pruaitch, and its development partners have launched a Personal Property Security Act (PPSA) Online Registry today.
It is a new form for secured lending and borrowing.
Small and Medium Enterprises (SMEs) and the private sector are now able to access finance and contribute to economic development. It will change the old ways of borrowing and lending, especially for middle and low-income earners.
The old scheme of receiving a loan sees that lenders will only issue loans to those who have a security, such as registered state lease land with clear titles.
Since most ordinary Papua New Guineans and SMEs do not own such securities, they are denied access to credits.
With the introduction of this online security registry, everyone will be able to secure loans using properties such as vehicles, machinery, or stock. Moreover, lenders will no longer require the services of a lawyer and a court order to repossess a pledged asset in the event of non-repayment.
The Investment Promotion Authority (IPA) is the appointed registrar.
The project is an initiative of the Treasury department, and supported by Asian Development Bank (ADB) and PNG Chamber of Commerce.