World Bank recommends public-private partnership to implement STR

The World Bank experts have recommended to implement Secured Transaction Registry (STR) in the form of a public-private partnership in Nepal.

Under this arrangement, the Ministry of Finance will create a new Secured Transaction Registry Office (STRO) and the Credit Information Centre Ltd. (CICL) will be appointed as the private partner, responsible for the day-to-day operation of the registry, said a press release issued by World Bank today.

The registry will be a  fully electronic, English-language, web-based system that allows lenders to record pledges on movable assets, including motor vehicles.

The new Secured Transactions Act (Act) was introduced in 2005 to facilitate the use of movable assets as collateral in the country. The Act, among other advancements, provides for an electronic, centralized electronic registry to file pledges on movable assets. The Act will become operational once it is established in Nepal.

The International Finance Corporation (IFC) and World Bank held a workshop today to discuss the findings and recommendations of the World Bank-IFC’s feasibility study for the establishment of a secured transactions registry.

The World Bank - IFC is providing assistance to the government of Nepal to establish a modern, state-of-the-art secured transactions registry.  The World Bank-IFC team has conducted a feasibility study to provide guidance on the details of the registry design, operations, and business model, said the press release.