Home Business Crops, livestock, and vehicles to be used as bank loans collateral

Crops, livestock, and vehicles to be used as bank loans collateral

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STATE PRESIDENT: Masisi

Government is in the process of drafting legislation that will establish a Collateral Registry in Botswana.

President Mokgweetsi Masisi announced yesterday when he delivered his maiden State of the Nation Address (SONA).

Masisi said the target is to have the Bill submitted to parliament in the 2019 July sitting.

This, according to the President, is aimed at improving the volume of credit to the private sector especially the micro, small and medium enterprises in Botswana which is said to be currently low when compared to other countries.

“A major hurdle to the flow of credit is that currently financial institutions only take immovable property as collateral credit,” said the President.

Through the concept of Collateral Registry, households and businesses will be able to register their movable assets as collateral to get credit from lenders.

“Such immovable assets include vehicles, industrial and agricultural equipment, machinery, inventory, account receivables, intellectual property rights, and agricultural products such as crops and livestock,” he pronounced.