Marshall Islands' Secured Transactions Act Will Improve Access to Finance, Says ADB
The Secured Transactions Act effective now in the Republic of the Marshall Islands (RMI), will make it easier for people to access business and consumer loans, using personal property as collateral. Under the Act, individuals using personal property as collateral to secure loans, register details of the transaction with the new Secured Transactions Registry. The Registry, located at the Land Registration Authority office is available online and may be electronically searched. ADB has supported RMI since 2005, to help establish the Registry which was prepared following local consultations.
“The Secured Transactions Act will make it easier for people to secure loans to start or grow a business, using personal property such as boats, or farm equipment,” said Mattlan Zackhras, Minister of Resources and Development (MRD) of the RMI Government.
"Access to finance is a major constraint to economic growth in RMI. The law will effectively lower lending risks and bring down transactions costs," said Sungsup Ra, Director of ADB's Pacific Department. “The Secured Transactions Act is part of a shared commitment towards improving the business environment, and in particular access to finance, in RMI."
The launch of the Secured Transactions Registry system is part of a larger regional effort by ADB to improve access to finance. Other ADB-supported secured transactions reform initiatives are being implemented in Palau, Samoa, Timor-Leste, Tonga, and Vanuatu. Rural and microfinance related efforts are also underway in Papua New Guinea, Samoa, Timor Leste, and Vanuatu.
The MRD are responsible for the management of RMI's Secured Transactions Registry, which is available to the public via the internet: www.stformi.com
ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region.
- Asian Development Bank, Manila, Philippines, January 27, 2010
