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 sector growth.”
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 2003.
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.
About IFC
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
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