A LAW allowing small businesses to offer new types of assets as collateral will need to wait about six months for the establishment of an electronic registry, a Department of Finance official said.

Republic Act 11057, or the Personal Property Security Act (PPSA), allows micro, small, and medium enterprises (MSMEs) as well as farmers and fisherfolk to offer as loan security collateral such as accounts receivable, inventory, negotiable instruments, electronic securities, crops, livestock, consumer goods, machinery, equipment as well as intellectual property rights.

Finance Assistant Secretary Danielle Marie S. Rieza Culangen said while the law’s implementing rules and regulations are expected by August, the PPSA allows for suspended implementation until the establishment of an online registry for the loan collateral items.

Ms. Culangen estimated that the registry will require about six months to establish after the issuance of the IRR.

She was speaking to reporters at a public consultation held Thursday at the University of the Philippines.

“The law says that implementation will be suspended until the registry is online,” Ms. Culangen said.

She added that the registry is currently in the design stage, while the Department of Budget and Management (DBM) will only release funding for it after the IRR is issued.

“The initial timeline given was when we discuss it with them was six months… from the issuance of the IRR. DBM is waiting for the IRR to be issued before it can release certain budgetary items,” she said. — Beatrice M. Laforga

RELATED ARTICLESMORE FROM AUTHOR