Business legislation reviewed

 THE Investment Promotion Authority with the help of the Asian Development Bank has reviewed an important legislation and made changes to help businesses operating in the country.

The Personal Property Securities Act (PPSA) has been reviewed with the aim of making lenders and creditors trade in a properly regulated environment. 

The reviewed legislation will come into operation next year, according to Register of Companies Alex Tongayu.

Tongayu, Anthony Frazier, ADB consultant, and Rosanda Kora, ADB private sector development coordinator (PNG), were in Lae yesterday and met with representatives of business houses to discuss the law.

“The PPSA is aimed at the banking and financial institutions but it concerns the wider business community,” Tongayu said.

He said the Act was basically an economic sector reform disguised as a new law.

He said the purpose of this law was to increase lending in the country.

Tongayu said the new law aimed to make it easier for people to pledge “movable properties” as collateral loans.

He said the law aimed at increasing access to credit and increase overall economic activities.

Tongayu said the reform was funded by the ADB with counterpart funding from the Treasury Department.

“The PPSA was passed (by Parliament) in Dec, 2011, but was not yet commenced,” he said. 

“The regulation is almost in place.

“The registrar of companies said the PPSA will apply to all business houses and also individuals.

“It covers all ‘movable properties’ and applies to more transactions than just bank loans.”

He said the good thing about the PPSA is that its registry will be online and requires no filing paper.

“You can enter your details in real time with a click of a button,” Tongayu said. 

He said under the PPSA movable property (collateral types) included but not limited to equipments, inventories, account receivables, vehicles, crops and timbers to be cut and properties.

He said the movable properties do not include household goods and also does not cover land.

Tongayu said the registry was free and open to all who wished to fill in their details.

He clarified that the IPA only regulate and does not have an input over the type and nature of transactions entered into by parties involve in the lending and crediting process.