The National Competitiveness and Productivity Council (NCPC) moved another step closer to full implementation of the Security Interest in Movable Properties Bill which was passed in parliament in 2022. The establishment of a Collateral Registry of movable assets is vital for the full implementation of the legislation. Director of the NCPC, Lisa Florent-Montoute said the contract for the development of the collateral registry has been awarded to IOS Partners and a kick-start meeting was held in early February to discuss contract management among other matters.
“We had a team of stakeholders in order to ensure the launch of the collateral registry and so the NCPC has been the main collaborator in ensuring this implementation takes place sometime in September of this year.”
“This project is not anything new for us.”
Founder and Senior Managing Director of IOS Partners, Robert Hans, said IOS has operated for the past 24 years providing consultancy and advisory support with a focus on international economic development. His team brings together expertise in information technology solutions for deployment, e-government, and digital transformation.
“We’ve been involved with a total of nine countries developing collateral registries and secure transactions registries. We have a number of our systems operational around the world and this is in fact well around the world. Countries such as Laos, Brunei, Qatar, and others in the Caribbean.”
Funding for the development of the Collateral Registry came from the world bank under the Financing for Tourism Competitiveness Improvement project within the Ministry of Tourism. Permanent Secretary in the Ministry of Tourism, Donalyn Vittet explained the importance of the registry to the tourism and creative sectors.
“It signals a lot of hope for those persons who didn’t otherwise have immoveable assets and a lot of the creative industries and small businesses within the tourism industry who would want to take loans and look for different financing products to improve their tourism offering, that will invariably strengthen the destination and most times they need to have immovable assets. But, this collateral registry brings hope in such a way that they are able to use movable assets as security.”
The International Finance Corporation (IFC) has been working collaboratively with the Government of Saint Lucia via the NCPC to ensure the development and implementation of the Security Interest in Movable Properties Bill which is expected to enhance financial inclusion in Saint Lucia, fostering the growth and competitiveness of micro, small and medium enterprises. Ronke-Amoni Ogunsulire, is IFC’s Regional Manager for the Caribbean.
“So what comes next? The development of a modern, online, notice-based collateral registry to operationalize the law. In addition to establishing baseline data, IFC will guide officials in implementing the software, develop robust statistical reports for policy analysis, and support the training of key stakeholders on the new secure transactions and collateral registry system.”
Initial capacity-building sessions will target financial institutions, government officials, the business community, and creditors on the island. Vice President of the Saint Lucia Bar Association, Deale Lee, said his association supports the creation of the Collateral Registry as a tool that can accurately record security interest over movable property.
“What has happened in practice oftentimes is persons will give credit, will try to take collateral over a movable property and the moveable property being movable disappears but at least with this now when you have a proper registry you can track, you can record and you can accurately take account of your collateral over movable properties.”
“We have been the first in the OECS in ensuring the implementation of the collateral registry as well as the Security Interest in Movable Properties Bill.” The NCPC Director added.
Saint Lucia’s Collateral Registry which will be housed at the High Court.