Jamaica

Assessment of Movable Asset-based Lending in Jamaica

Jan 01, 2021

Lending based on movable assets is much more common in developed markets. Through the work of the World Bank Group and the International Finance Corporation, the use of lending based on movable assets continues to expand throughout the globe. Many best-practice examples can now be found in emerging markets such as Mexico, Colombia, Peru, Vietnam, and China, all of which have succeeded in expanding the use and application of movable asset-based lending (MABL) solutions. The current publication examined MABL in Jamaica, with a focus on developing possible options for deepening secondary markets among assets commonly used as collateral in MABL.

In 2013 the Government of Jamaica, to increase the use of MABL, passed the Security Interests in Personal Property Act (SIPPA) and established the National Security Interests in Personal Property Registry (NSIPPR). The registry allows for the listing of collateral assets used for financing and so creates a priority of interest among creditors. It also helps track transactions between creditors and debtors. The SIPPA allows MSMEs and other businesses to offer movable assets and investments such as motor vehicles, agricultural products, livestock, securities, machinery and equipment, crops, patents, trademarks, and other forms of intellectual property as collateral for securing loans. As of 2018, the number of registrations within the registry had increased to just over 25,000. The top three types of collateral used for financing include motor vehicles, furniture, and securities. Commercial banks are frequently cited to be conservative in their lending choices, and there is also a need to improve accounting processes and project evaluation and reporting among MSMEs. The government and its administrators have taken steps to increase the use of leasing, reverse factoring, and factoring as well as the functionality, confidentiality, and ease of transactions within the registry.

Read the publication here to learn more about the recommendations for developing secondary markets, among other potential assets that can be used for MABL, as well as general steps for implementation.

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Jamaica

Current Volume

610182877

Finance gap

2924403849

Micro Women Gap

258494964

Micro Men Gap

2665908885

MSME Women Gap

258494964

MSME Men Gap

2665908885

Micro Gap ( Men and Women )

2924403849

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Member News: IDB Will Invest US $50 Million in SME Projects Throughout Jamaica

Oct 28, 2018

SME Finance Forum member, Inter-American Development Bank (IDB) will invest US $50 million a year towards, tourism, infrastructure, transportation, ports, roads, as well as in the financial sector projects in Jamaica.

The investment is through IDB’s invest arm, according to the article, IDB Invest.

“This latest expanded financial framework from the IDB Invest, which will allow projects as small as US$1 million to be included, will help tremendously in improving SMEs investment in our tourism, infrastructure, transportation and financial sector,” said Jamaica’s ambassador to the United States and chair of the CARICOM caucus of ambassadors, Audrey Marks.

The CARICOM caucus of ambassadors is working to attract new investments and strengthening Caribbean identity across the bank.

British International Investment (ex CDC Group)

Read more about British International Investment (ex CDC Group)

British International Investment (ex CDC Group) is UK’s development finance institution and wholly owned by the UK government. It supports businesses throughout Africa and South Asia.

Country / Region

United Kingdom

Member Since

Fri, 08/18/2017 - 12:00

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Organization Type

Development Finance Institution

Profile Link

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Location

51.5072178, -0.1275862

City/Town location

London, UK

PipeDrive organization Id

352

Operation countries

Congo, Democratic Republic

Bosnia and Herzegovina

DFC - U.S. International Development Finance Corporation (Former OPIC)

Read more about DFC - U.S. International Development Finance Corporation (Former OPIC)

OPIC is the DFC - U.S. Government’s development finance institution. It mobilizes private capital in emerging and frontier economies to address development challenges and advance US foreign policy objectives.

Country / Region

USA

Member Since

Sun, 11/15/2015 - 12:00

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