The International Finance Corporation (IFC), member of the World Bank Group, and the Eastern Caribbean Central Bank (ECCB), have signed a Memorandum of Understanding (MOU), that aims to expand access to finance for small and medium sized enterprises (SMEs) in the Eastern Caribbean through a Secured Transactions Collateral Registry Programme.
Through the MOU, the IFC and the ECCB will establish the groundwork for a common legal framework that will allow small and medium-sized business owners throughout the ECCU to use movable assets as collateral when seeking finance. These include: machinery, crops or accounts receivables.
The objective is to create a centralised, shared registry in the region, following international standards established by the United Nations Commission on International Trade Law (UNCITRAL), that can be customised to each country’s particular case.
As part of the MOU, the ECCB and the IFC will also co-host knowledge sharing and capacity building initiatives with representatives from the government, financial sector and relevant parties across the region.