Businesses can now use movable assets as loan security – AG says
Attorney General, Anil Nandlall S.C.
Attorney General, Anil Nandlall S.C.

– modern framework to simplify credit and financing in Guyana

ATTORNEY General and Minister of Legal Affairs, Anil Nandlall, on Tuesday evening said that the collateral registry, established under the Security Interest in Movable Property Act of 2024, is now fully operational.
The Minister made this announcement while speaking on his weekly programme, Issues in the News, during which he stated that the activation of the registry marks a significant milestone in advancing Guyana’s business and financial regulatory environment.
This, he said, provided a modern legal framework for the use of movable property as collateral in credit transactions.
“One of the issues that arose in our engagement with the banks related to access to financing,” he said.
“We enacted a legislation called the Security Interest in Movable Property Act… Now, this piece of legislation introduces a modern framework for the registration of security interests in movable property and represents a significant milestone in advancing Guyana’s business and financial regulatory environment.”
The legislation allows persons to borrow using movable property or chattels as security. Nandlall noted that this reform is especially important for individuals or businesses purchasing items such as vehicles or equipment on hire purchase or other credit arrangements.
“This legislation allows for the establishment of a special registry within the Deeds and Commercial Registry called a Collateral Registry, and these credit instruments are filed as of record at this registry,” he said.
He disclosed that while the registry had been delayed due to technical challenges, it is now functioning and available to all relevant stakeholders.
“I am pleased to announce that as of today, the registry is up and functional, and bankers, retail suppliers, automotive dealers and all those businesses engaged in selling movable property on credit can now have access to this Collateral Registry and file the requisite instruments which they will decide to use to secure their credit,” he stated.
Against this backdrop, he explained that the previous bill of sale act has been repealed and replaced by this new one, which introduces a transparent and modern framework.
“We have a modern framework now through which you can access financing, and the banks and the auto dealers and the businesses who are engaged in these transactions now have a modern framework within which they can transact their businesses,” he said.
The Attorney General further stated that the Registrar of Commerce has been instructed to issue a public notice informing stakeholders about the registry’s operation. “Stakeholders, both on the banking and on the commercial side, were trained in relation to the use of this registry, and of course, the registry staff themselves were also trained,” he said.
Further to this, additional training sessions will be held to further familiarise users with the new system.

 

 

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