Citizens of East Timor may soon have access to business loans from commercial banks using moveable assets as collateral, as a result of an initiative co-financed by the Asian Development Bank (ADB), the institution said in a statement.

The government is proposing to introduce secured transactions reforms to promote broader access to finance and improve the enabling environment for business in the country.

“Once the new secured transactions reforms are in place, people will be able to secure loans to start or grow a business using moveable assets such as construction machinery, farm equipment, inventory or accounts receivable,” said Andrea Iffland, regional director of ADB’s Pacific Liaison and Co-ordination Office in Sydney, Australia.

“The reforms will contribute to the government’s efforts to improve efficiency and the ease of doing business.”

The reforms are being implemented through the Secretary of State for the Support and Promotion of the Private Sector.

The Pacific Private Sector Development Initiative (PSDI), co-financed by ADB, and the governments of Australia and New Zealand, is providing the government of East Timor with technical assistance “to help boost business development by modernising business laws and boosting access to finance,” the financial institution said.