KOROR, PALAU – The Asian Development Bank (ADB) has funded a new electronic Secured Transactions Registry, which will make it easier for people to access business loans from commercial banks, using moveable assets as collateral. The registry will also contribute towards the Government of Palau’s efforts to improve efficiency and ease of doing business in the country.
Launched by the Palau Financial Institutions Commission today, the Secured Transactions Registry is an online facility which may be used by lenders to register interests in collateral and allow them to check if money is owed on collateral presented.
“The registry will simplify all aspects of loan processing for banks,” said Semdiu Decherong Registrar of the Secured Transactions Registry. “Through the registry, loan approval times will improve as lenders will have 24 hour access to reliable information and this will reduce loan processing times from weeks or months to days.”
The registry will help facilitate the administration of the new Secured Transactions Act which was passed in May 2012. ADB also assisted the Government by supporting the drafting of the Act, which was prepared following extensive consultations over a long period of time. The Act was introduced as part of the government’s plan to boost business development by modernizing business laws and increasing access to finance opportunities.
“Through the Secured Transactions Registry people will be able to secure loans to start or grow a business, using moveable assets such as boats or farm equipment, says Andrea Iffland, Regional Director of ADB's Pacific Liaison and Coordination Office in Sydney, Australia. “The registry is also a reliable, transparent record of transactions which will help prevent conflict among creditors.”
The Financial Institutions Commission will be the contact point for businesses and users of the registry. The registry, is available to the public on the Internet via the following link: https://www.stforop.com/
Getting adequate access to financial services is a major constraint to economic growth in Palau and the rest of the Pacific region. Other ADB supported secured transactions reform initiatives have been implemented in: Marshall Islands, Solomon Islands, FSM, Tonga, and Vanuatu with PNG to follow later in 2013.
The Secured Transactions Registry was funded through the AusAID and ADB funded Pacific Private Sector Development Initiative. The initiative supports efforts by ADB’s developing member countries in the Pacific to encourage private sector-led, sustainable economic growth.