1. Increasing Access to Credit Through Secured Transactions Systems and Collateral Registries. International Practices Alejandro Alvarez de la Campa, WBG Mauritius, April 20, 2010

3. Inventory

4. Accounts receivable

5. Agricultural products (fertilizers, crops, livestock, fishfarm)

6. Consumer goods (computers, furniture)

7. Commodities

8. Intellectual Property Rights

9. Negotiable instruments (shares, stocks)

10. Letters of Credit

12. Reducing concentration and increasing competition in the financial sector, by enabling both banks and non-bank financial institutions to offer secured loans

15. 5 WHY IS COLLATERAL AND COLLATERAL REGISTRIES IMPORTANT? Assets Held by Firms Assets Banks Accept as Collateral Source: WB Enterprise Surveys

16. 6 COLLATERAL REGISTRIES ARE PART OF DIFFERENT INSTITUTIONS DEPENDING ON THE JURISDICTION

17. PERFORMANCE OF CRF COUNTRIES IN DOING BUSINESS LEGAL RIGHTS INDEX 7

19. Unified geographically (centralized) and by types of assets

21. 10 PUBLICITY OF SECURITY INTERESTS IN MOVABLE COLLATERAL: COLLATERAL REGISTRIES The means of making a claim against movable property transparent to third parties, and to establish the priority over a specific assets visvis third parties. Registration of “security interests”, “charges” or “pledges”. Main principles: 1. Registry for rights on all types of movable property (tangible and intangible) and for all types of natural and juridical persons (companies) 2. Electronic web-based registry for real time data 3. Centralized data 4. Notice based system 5. Simplicity - information contained limited to what is essential: creditor, debtor, loan amount, general description of the asset 6. No notarization or submission of documents needed 7. Data and searches accessible to all at real time 8. Reasonable fees (flat fee for each registration) 9. Security for data protection

22. 11 IFC SECURED TRANSACTIONS – BUSINESS & DELIVERY MODEL Stakeholder Management (client: government + beneficiaries: FIs and NBFIs) + M&E SOLUTION DESIGN IMPLEMENTATION DIAGNOSTIC What is wrong? How to fix it? Making it happen Advice on revising,harmonizing the legal framework Enacting new laws. Intensive consultations to meet legislative agenda No laws, complex / conflicting laws LAW No registry or paper-based, dysfunctional registry New electronic / web based registry. Study visits, training, live demonstrations of registry, access points Creation of new registry or registry redesign, shift to electronic platform REGISTRY Focus on raising awareness, building partnerships with private and public sector Training of FIs and NBFIs. Workshops, conferences, media outreach, lending survey Little or no movable asset financing CAPACITY

23. 12 CURRENT PROJECT PORTFOLIO

24. 13 CHINA CASE: REFORM PROCESS

25. 14 CHINA: OPENING UP $1 TRILLION IN CREDIT FOR BUSINESSES THROUGH SECURED TRANSACTIONS REFORM

26. 15 SECURED TRANSACTIONS GUIDE IFC EXTERNAL WEBSITE http://smartlessons.ifc.org

27. 16 COLLATERAL REGISTRY DEMO

28. Welcome Screen

29. Set Up Client Account

30. Client Home Page

31. Client Account General InformationWhen account is opened, Contact information is filled with the initial Client Security Administrator’sinformation, but may be changed. A client security administrator may update information in this screen.

32. Client Account UsersA client security administrator may add, delete, restore or change rights of users of the account.To delete, restore or change rights of a user, click the User Name to open the User Profile screen.

33. User ProfileTo delete a user, security administrator unchecks the Active box. To restore a user whose accesshas been disabled by unsuccessful attempts to log-in, security administrator re-checks the Active box.

34. Client Account Financial TabAn index of past statements will be displayed in the Past Statements frame.To view activity and amount due for a past month, click the month.

35. Initial Notice Filer InformationIf the filer is the secured party, click “Add Filer as Secured Party” to automatically fill and bypass Secured Party tab.

36. Add DebtorSelection of Debtor Type causes the correct type of field to be displayed for the debtor identifier, i.e. ID number or name.

37. Debtor TabClicking the pencil icon in the left column will display Debtor information in the Add Debtor screen for edit.Clicking on the black X will delete the Debtor from the record.

38. Secured Party Tab

39. Collateral TabAt least one of the fields must contain information. That is, collateral may be described by anarrative description, a vehicle serial number, an attached PDF, or any combination of them.

40. Review Notice

41. Confirm NoticePrint this page as proof of filing. Click the Print icon in the upper left to select a printer.

42. Change Notice – First Screen

43. Change Notice – Second ScreenIf change is a Continuation or Termination, Debtors, Secured Parties and Collateral tabs will not be displayed.

44. Termination ConfirmationOther types of changes will have similar screens with all relevant information displayed for print as confirmation of filing.

45. Search by File Number

46. Search by DebtorSelection of Debtor Type will display appropriate type of field for entry of Debtor ID number or name.

47. Search by Vehicle SN

48. Search Report (Page 1)

49. Search Report (Page 2)