DOF accepting stakeholders’ papers on Personal Property Security’s draft IRR

Stakeholders have until Wednesday, July 31, to submit their comments on the draft implementing rules and regulations (IRR) of the Personal Property Security Act (PPSA), the Department of Finance said on Tuesday.

The department asked stakeholders and other interested parties to help review the IRR draft on the department’s website.

Stakeholders and other interested parties may submit their inputs and comments online.

The PPSA or Republic Act (RA) No. 11057 enables access to credit by allowing borrowers use movable assets as eligible collateral such as machinery, accounts receivables, inventories, livestock, and household inventories.

According to DOF Assistant Secretary Danielle Marie Rieza Culangen, all of these types of assets have their own nuances and the DOF should consider addressing them in the IRR.

A public consultation of the IRR draft was conducted at the University of the Philippines (UP) Law Center on July 25.

Among the concerns raised by participant are the transactions involving accounts receivables as collateral in securing loans from banks.

The PPSA aims to open the access to credit for micro, small and medium enterprises (MSMEs), farmers, and fisherfolk using collaterals other than the usual real estate or vehicles.

“Now, they have more options,” Culangen said.

According to Finance department, the law is expected to help boost the economy as access to finance is critical to higher productivity of MSMEs and the agriculture and fisheries sector.

“RA 11057 is expected to strengthen the country’s position in the ‘Getting Credit Indicator’ of the Ease of Doing Business Survey of the World Bank, where the Philippines was ranked 142 among 190 countries in 2017,” it said. —Joviland Rita/VDS, GMA News