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Oliver Kazunga, Senior Business Reporter
THE Parliamentary Portfolio Committee on Finance and Economic Development is inviting submissions from members of the public and other stakeholders on the proposed Movable Property Security Interests Bill.
The proposed Bill seeks to facilitate micro, small and medium enterprises as well as communal farmers’ increased access to credit.
“The Portfolio Committee on Finance and Economic Development is considering the Movable Property Security Interests Bill. Stakeholders and members of the public are invited to submit their views and recommendations on the proposed law. Please e-mail your input to the Clerk of Parliament,” reads a statement posted on Parliament website.
The committee’s chairperson Mr David Chapfika could not be reached for comment yesterday.
It is however believed that the objective of the proposed law is to facilitate industry and trade as well as other socio-economic activities by enabling businesses and individuals to utilise their movable property as collateral for credit.
In the past, micro, small and medium scale enterprises have been restricted from accessing credit from the banking sector due to lack of immovable property used as collateral.
This adversely affected the growth and development of businesses under the micro, small and medium enterprise sector.
It is also hoped that the Bill will be used by the Reserve Bank of Zimbabwe in creating a collateral registry as well as publicising the potential existence of interests in the collateral.
A collateral registry is a publicly available database of interests in or ownership of movable assets allowing borrowers to prove their credit worthiness and potential lenders to assess their ranking priority in potential claims against particular collateral.
According to RBZ, collateral that can be used as security includes equipment, inventory, accounts receivable, farm produce, household items, fixtures, and bank accounts, among others.
— @okazunga
Online Reporter