An online registry that will make it easier for lenders in PNG to provide credit using moveable assets, such as vehicles or machinery, as collateral will be launched tomorrow in Port Moresby.
The Personal Property Security Act (PPSA) and Registry will be launched by the Treasury Minister Patrick Pruaitch at the Crown Plaza Hotel.
The reform has been overseen by the Department of the Treasury, with assistance from the Private Sector Development Initiative, Asian Development Bank.
The PPSA was passed in 2011 and will start this month.
The purpose of the PPSA reform is to promote commerce.
It does so by providing a legal framework that makes it easier to pledge movable property to stand good for loans.
If securing loans with collateral is easier, less expensive, and more reliable in terms of enforcement, more people will have the opportunity to participate in commerce and the economy will grow.
The PPSA will also do away with these various legal forms and consolidate all lending against movable property under one law.
The PPSA will also change current practices.
After the beginning of the Act and the online registry, no longer will there be any company charges filed with the company registry office.
The Secretary for Treasury Dairi Vele, ADB Country Director Marcelo Minc, and ADB Regional Director of the Pacific Liaison and Coordination Office Andrea Iffland will be attending the launch.