- Enactment of the SIPP Act and SIPP Registry, underscores the Government’s commitment to strengthening Jamaica’s business environment.
- The SIPP Act will enable personal property to be used as collateral for loans, while the SIPP Registry will facilitate financing for the Micro, Small, and Medium-size Enterprise (MSME) Sector.
- This will facilitate improved access to credit by including ‘movable’ property as allowable forms of collateral.
State Minister for Industry, Investment, and Commerce, Hon. Sharon Ffolkes-Abrahams, says institution of the Security Interests in Personal Property (SIPP) Act, and Security Interests Personal Property (SIPP) Registry, underscores the Government’s commitment to strengthening Jamaica’s business environment.
The SIPP Act will enable personal property to be used as collateral for loans, while the SIPP Registry will facilitate financing for the Micro, Small, and Medium-size Enterprise (MSME) Sector.
Addressing a business reform sensitization workshop at Riu Hotel and Resort in Montego Bay on May 30, Mrs. Ffolkes-Abrahams said an important aspect of improving the business environment is establishing a secured transactions framework. This, she added, will facilitate improved access to credit by including ‘movable’ property as allowable forms of collateral.
“Under this landmark legislation (SIPP Act/Registry), assets which can be used as collateral to access loans for business include – motor vehicles, agricultural products, livestock, stocks and securities, machinery and equipment, crops and other agricultural yields, account receivables, future acquisition of security interests, and unborn livestock,” the State Minister explained.
She emphasized challenges which MSME stakeholders have long experienced in accessing financing, noting that they were deemed ‘high risk’ by creditors, particularly in an environment where she said non-traditional collateral was not recognized.
“The SIPP Act changes that and will, undoubtedly, lead to the creation of a more robust and dynamic MSME sector. This is a significant achievement on the part of the government and one which will have a major and positive impact on the long-term sustainability of the MSME sector. It also serves to underscore government’s commitment to supporting this sector which is critical to economic growth, jobs, and wealth creation,” Mrs. Ffolkes-Abrahams indicated.
The State Minister said as the administration moves to create a more dynamic and prosperous economy, the SIPP Act and Registry, will be pivotal in this regard.
“The introduction of these new reforms (also) underscores our commitment… to significantly…raising our level of competitiveness and achieving the socioeconomic transformation of our country,” she added.
The business reform sensitization session was organized and hosted by government in collaboration with the Inter-American Development Bank (IDB); United Kingdom Department for International Development (DFID); Foreign Affairs, Trade, and Development office of Canada; National Competitiveness Council of Jamaica; Companies Office of Jamaica; and Compete Caribbean.
A wide cross-section of representatives from the banking, legal, and business sector participated in the forum.