News Releases

APIA, SAMOA (27 February 2017) — Lending institutions in Samoa will be able to provide credit to more businesses following the launch of an online registry that makes it easier to accept movable property — such as machinery, accounts receivable, or inventory — as collateral.

Activation of the Personal Property Securities Registry in Apia today was the culmination of an extensive reform to establish a personal property securities framework in Samoa, through which security interests in movable property can be safely and easily recorded. The reforms were supported by the Asian Development Bank’s (ADB) Pacific Private Sector Development Initiative (PSDI).

“Access to credit is a critical driver of economic growth. It allows new businesses to form, successful businesses to grow, and jobs and wealth to be created,” said Masud Nizami, Financial Sector Specialist with ADB’s Pacific Liaison and Coordination Office. “With limited land ownership in Samoa, using movable property as security for loans makes sense — it makes credit possible for all businesses with assets and it ‘unlocks’ the value of these assets to help grow the private sector.”

Lenders can use the online registry to secure their claim on assets borrowers have pledged as collateral and verify that the asset has not already been pledged elsewhere. Moreover, under the new framework, lenders can repossess a pledged asset in the event of non-repayment without needing a lawyer and a court order. 

It is expected that the convenience and accessibility of the registry will also encourage non-bank suppliers — such as wholesalers, agricultural stores, exporters, and vehicle dealerships — to extend credit, as this can now be secured against their customers’ business assets or products.

The registry was launched by Tuifa'asisina Misa Lisati Leleisiuao Palemene, Samoa's Associate Minister of Commerce, Industry, and Labor, at an event attended by government and private sector representatives and the Australian and New Zealand High Commissioners to Samoa. PSDI is now working the Government of Samoa to raise lenders’ awareness of the new system and encourage the creation of new lending products.  

PSDI is a technical assistance facility cofinanced by the Government of Australia, the Government of New Zealand, and ADB. It supports ADB's 14 Pacific developing member countries to improve the enabling environment for business and to support inclusive, private sector-led economic growth. The support of the Australian and New Zealand governments and ADB has enabled PSDI to operate in the region for almost 10 years and assist with more than 280 reforms.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region.