Financial Services Commission of Belize Welcomes Moveable Property Secured Transactions Legislation

The Financial Services Commission of Belize (FSC) has welcomed the enactment of the Moveable Property Secured Transactions Legislation, describing it as a “landmark step towards financial inclusion and economic growth.”

Modernizing the Financial Landscape

The company said the legislation modernizes Belize’s financial landscape by enabling movable assets to be used as collateral for loans and establishing the Secured Transactions and Collateral Registry (STCR).

Key Features of the STCR

The FSC said that the legislation introduces consistency and certainty, streamlining legal provisions for secured financing involving movable assets and providing legal recognition of movable assets as collateral, increasing financial opportunities for individuals and businesses.

In addition, it provides a comprehensive plan for operationalizing the Collateral Security Registry. It ensures that the amendments to the Bill of Sale Act align existing regulations with the new framework, replacing the registration of movable collateral under the Bill of Sale Act with registration under the new law.

Unlocking Economic Potential

“This initiative unlocks the economic potential of movable assets such as inventory, equipment, and livestock, offering a lifeline to micro, small, and medium enterprises (MSMEs) and individuals without access to fixed-asset collateral like real estate,” the FSC noted.

The expected outcomes include enabling diverse economic actors to access credit and spurring innovation and expansion across sectors.

Launching the STCR

The STCR was officially launched during the seventh Edition of EntreCon of the Belize Trade and Investment Development Service (BELTRAIDE), with the chief executive officer in the Office of the Prime Minister, Narda Garcia, highlighting its importance in empowering businesses and commending the visionary leadership of the FSC and BCCAR.

Deputy Prime Minister Cordel Hyde underscored the STCR’s transformative impact on Belize’s financial ecosystem and its role in fostering sustainable growth.

Conclusion

This historic legislation and registry mark a milestone in Belize’s journey towards financial inclusivity and economic modernization. The STCR embodies our commitment to creating opportunities for all Belizeans.

FAQs

* What is the purpose of the Moveable Property Secured Transactions Legislation?
The legislation enables movable assets to be used as collateral for loans and establishes the Secured Transactions and Collateral Registry (STCR).
* What are the key features of the STCR?
The STCR includes an electronic registry allowing lenders and borrowers to record and search for security interests, building trust in financial transactions, providing a clear, equitable process for borrowers and creditors, reducing risk, and ensuring fair practices.
* What are the expected outcomes of the STCR?
The expected outcomes include enabling diverse economic actors to access credit and spurring innovation and expansion across sectors.