- The Act is to modernise and improve the availability of domestic credit to the private sector
- The Act is also intended to minimise the risk of loan repayment
- The legislation paves the way for business assets to be pledged as collateral
Cabinet has given the nod for the introduction of a Bill, which is expected to facilitate increased access to credit, and enhance the business environment.
The Security Interest in Personal Property Act (2013) is designed to implement a legal framework to modernise and improve the availability of domestic credit to the private sector, while minimising the risk of loan repayment.
“It also seeks to create security interests in personal property, simplify the registration process for recognition of such interests, allow for public notification of security interests, and stipulate the rules which govern the priority in which such interests are enforceable,” said Minister with responsibility for Information , Senator the Hon. Sandrea Falconer.
She was speaking on July 24, at the weekly Jamaica House press briefing at Jamaica House.
According to Miss Falconer, the current collateral systems in Jamaica is costly, inefficient, and not in keeping with best practice standards. The legislation paves the way for business assets to be pledged as collateral with greater reliability and certainty for recovery.
Justice Minister, Senator the Hon. Mark Golding, who also participated in the briefing, pointed out that this is the fifth piece of legislation to be brought to Parliament in compliance with the deadline set out in the Government’s agreement with the International Monetary Fund ( IMF).
Meanwhile, Cabinet approved the implementation of initial recommendations to improve the Government’s procurement process.
Senator Falconer explained that over the past 18 months, the Cabinet Infrastructure Sub Committee has observed delays in the procurement process, and recognising the negative impact this could have on the economy, stakeholders put forward recommendations to improve the procedure.
The proposals cover improvements to the legislative and regulatory framework; institutional framework and management capacity; transparency and integrity of the procurement system; procurement operations and market practices.
Minister Falconer noted also, that Cabinet discussed administrative sanctions to hold procuring entities and the approval bodies accountable for delays; developing procurement expertise across Government; and the work of the procurement appeals board.