USAID CBEE-R Supports Secured Transactions Framework Reform in Grenada

The content originally appeared on: The Barnacle News

St. George’s, Grenada – On May 8, 2024, the United States Agency for International Development (USAID), in partnership with the International Development Group LLC (IDG), collaborated with the Ministry of Finance to prepare stakeholders to fully engage in the development and implementation of Grenada’s Secured Transactions Framework (STF). This workshop is part of the USAID/Caribbean Business Enabling Environment Reform (CBEE-R) project’s wider initiative to improve access to finance in Grenada.

This transformative reform is poised to improve access to finance for the private sector, particularly micro, small, and medium-sized enterprises, by providing the legal basis on which financial institutions can accept moveable property as collateral for loans and other lending instruments. With a STF in place, financial institutions in Grenada stand to benefit significantly from increased transparency in relation to the priority of claims over pledged assets and more accurate information on which loan applications from a wider range of businesses and entrepreneurs can be assessed. To date, the Government of Grenada, via a cabinet decision in March 2024, has approved the implementation of a STF in Grenada, established a technical working group to guide the reform process, and mandated consultations with key stakeholders. USAID/CBEE-R, working collaboratively with the International Finance Corporation and the Eastern Caribbean Central Bank, is pleased to support the Government of Grenada as it embarks on this ambitious initiative.

During the workshop, representatives of both the public and private sectors participated in an inclusive decision-making process on the proposed reform and provided invaluable feedback on its development. The enthusiasm of stakeholders to learn about the next steps and their role in the reform process bodes well for the successful implementation of a STF in Grenada.

Overall, the CBEE-R activity aims to foster close collaboration between the government and the private sector to generate policies that support business growth and contribute to sustainable and strong Caribbean economies. The goal is to support interventions that strengthen the business-enabling environment and promote robust private sector-led economic growth while simultaneously building resilience to disasters and improving risk mitigation.