Wed | Sep 26, 2018

Unclaimed funds at financial institutions to finance MSME?

Published:Thursday | April 16, 2015 | 12:00 AM

Inter ministerial talks are taking place between the Ministries of Industry, Investment and Commerce and Finance and Planning, to determine if unclaimed funds at financial institutions and insurance companies could be used to fund the micro small and medium enterprise (MSME) sector.

Minister of Industry, Investment and Commerce Anthony Hylton said he had been in dialogue with finance minister Peter Phillips to examine the possibility of utilising these unclaimed funds.

"I am proposing that these resources be used to recapitalise the funding agencies of the ministry to make available appropriate financing to the MSME sector," Hylton said, during his contribution to the Sectoral Debate in Gordon House on Tuesday.

The industry, investment and commerce minister told his parliamentary colleagues that he had convened a taskforce to explore viable solutions, for appropriate MSME financing.

"We believe that public and private sectors need to work together to improve financing for the MSME sector. I expect a report in the next four to six months time."

Meanwhile, Hylton said that the Security Interest in Personal Property (SIPP) regime will provide access to credit to MSMEs.

Under SIPP, lending institutions will have access to reliable information to properly identify and track moveable assets which are pledged as collateral to obtain financing.

Noting that there were challenges in the start-up of the SIPP registry, Hylton said that following stakeholder consultations, these operational deficiencies were now resolved.