Monrovia, Liberia, May 9, 2013 -- IFC,
a member of the World Bank Group, said today it will help establish an
electronic movable collateral registry in Liberia, which will support the
growth of smaller businesses in the country by allowing them to obtain
loans using movable assets, such as equipment, as collateral.
The establishment of the electronic collateral
registry will greatly expand access to finance in Liberia, strengthening
the country’s financial infrastructure, giving transparency to the credit
system and contributing to its economic growth. The development of the
registry follows the enactment of a modern Secured Transactions Law (Chapter
5 of the Commercial Code) in 2010.
IFC has supported the Central Bank of Liberia
in the last few months in drafting the registry regulations that have recently
been approved and published in the Official Gazette. IFC will also work
with the Central Bank of Liberia to design and implement the web-based
movable registry, which is expected to come online at the end of 2013.
Peer Stein, IFC’s director of Access to
Finance, said, “A collateral registry will give small businesses in Liberia
an instant boost by allowing them to use assets such as equipment, inventory,
or crops as collateral to obtain loans. IFC has supported the development
of centralized collateral registries in several other developing countries,
including China, Ghana, and Vietnam, where they are supporting private
Reforming the framework for movable collateral
lending allows businesses—particularly SMEs—to leverage their assets
into capital for investment and growth. Modern collateral registries increase
the availability of credit and reduce the cost of credit.
IFC is active in Liberia with a number of
projects that are supporting the growth of smaller businesses and improving
the investment climate, helping the country rebuild its economy and put
its population back to work after a long-running civil war that ended in
IFC has helped cut the time it takes to register
a business in Liberia from 99 to two days, and has supported the creation
of a Commercial Court and Code in the country, which are offering greater
security for business transactions.
Liberia is also one of eight countries supported
by IFC’s Conflict Affected States in Africa Initiative, which is supporting
private sector growth, job creation, and increased investment in countries
recovering from conflict. CASA is backed by donor partners Ireland, the
Netherlands, Norway, and Sweden.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. We help developing
countries achieve sustainable growth by financing investment, mobilizing
capital in international financial markets, and providing advisory services
to businesses and governments. In FY12, our investments reached an all-time
high of more than $20 billion, leveraging the power of the private sector
to create jobs, spark innovation, and tackle the world’s most pressing
development challenges. For more information, visit www.ifc.org.