Unlocking Finance for Growth: Secured Transactions Reform in Pacific Island Economies
The Pacific has undergone one of the most extensive secured transactions reforms anywhere in the world. Although the reforms are relatively recent, initial results indicate that they will allow more borrowing and on better terms.
In many countries in the Pacific region, it is difficult to obtain credit. Many financial institutions believe that lending is extremely risky and that loans may not be repaid. There is, however, a means to reduce lending risk through legal and institutional changes. Commonly described as secured transactions reform or personal properties securities reform, these reforms can potentially transform access to credit for firms and individuals. This publication explains why secured transactions reform is necessary, describes the characteristics of a secured transactions framework, and some experiences in Pacific countries that have adopted the reforms.
This publication was produced by the Pacific Private Sector Development Initiative, a regional technical assistance facility cofinanced by the Asian Development Bank, the Government of Australia, and the New Zealand Government.
- Key Findings and Recommendations
- Increasing Credit through Secured Transactions Reform
- The Key Features of a Secured Transactions Framework
- Secured Transactions Reforms in the Pacific
- Reform in Solomon Islands and Vanuatu
- Summary and the Way Forward