ZAMBIANS will be able to access loans using movable properties as collateral once Parliament approves the Movable Property Security Interest Bill.
The use of movable property as collateral for credit will facilitate increased access to financing for micro, small and medium-scale enterprises.
Commerce, Trade and Industry Minister Margaret Mwanakatwe presented the Bill in Parliament on Thursday with the view of providing for the utilisation of movable assets as collateral.
Ms Mwanakatwe said the Movable Property Security Interest Bill provides for the creation of security interests in movable property so as to contribute to economic development.
She said the Bill would also harmonize secured transaction laws.
“…the Bill to provide for the creation of security interests in movable property so as to contribute to economic development; harmonise secured transaction laws,” Ms Mwanakatwe said.
Ms Mwanakatwe, who asked the Members of Parliament to support the Bill, said the Bill provides for harmonisation of conflict of laws in order to promote the financing of international trade and make security interests effective against third parties.
She said the Bill would enhance the availability of low-cost secured credit to allow debtors to use the full value inherent in their assets to support credit.
Ms Mwanakatwe said the Bill would also establish a Collateral Office and Collateral Registry for a single comprehensive registration regime for secured transactions in movable property.
“It will establish streamlined procedures for obtaining security interests and reducing transaction costs by minimising formalities and ensure effectiveness of security agreements and enforceability of security agreements and interests,” she said.
Ms Mwanakatwe further added that the Bill would provide for perfection of security interests, establish the determination of priority between security interests and provide for matters connected with, or incidental to, the foregoing.
Cabinet approved the introduction of the movable property security Bill in Parliament to provide for the utilisation of movable assets as collateral in September this year.
Acting Chief Government spokesperson then Vincent Mwale told journalists that the Proposed Bill would also set the tone for the creation of security interests in movable property and repeal the Trades Charges Act of 1973.
“The use of movable property as collateral for credit will facilitate increased access to financing for micro, small and medium-scale enterprises,” he said.