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Will facilitate commercial loans, economic development

HONIARA, Solomon Islands (SIBC, Aug. 14, 2008) – The Asian Development Bank has welcomed the passage in Solomon Islands Parliament of the Secured Transactions Act.

In a statement, the bank says the passing of the Act will make it easier for its people to access business loans from commercial banks.

The ADB had supported the drafting of the bill, which was prepared following extensive local consultations.

ADB’s Senior Private Sector Development Specialist Winfried Wicklein explains that the secured transactions covered by the new law are loans backed by movable assets such as boats, cars, or farm equipment to help people secure a loan to help start or grow a business.

Access to finance is a major constraint to economic growth in Solomon Islands.

And Mr Wicklein says the law will effectively lower lending risks and bring down transactions costs.

He says the law is part of a larger regional effort by ADB to improve access to finance.

Other ADB-supported secured transactions reform initiatives are being implemented in Marshall Islands, Palau, Samoa, Timor Leste, Tonga, and Vanuatu.

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