The Programme focusing on improving access to finance seeks to address issues relating both the supply of credit and the factors which affect the demand of credit. The Programme will improve access to finance by diversifying the credit market by kick starting the leasing industry in Lesotho. The Programme will also support the move towards the use of movable and intangible assets as collateral and the establishment of a modern movable collateral registry.
The fundamental issue on access to credit facilities has been found to be the lack of credit records for individuals and businesses. This deficiency will be mitigated with the establishment of the credit bureau that will be housed under the Central Bank of Lesotho. The credit bureau will be supported by the movable collateral Registry. The aim of the registry is to increase the chances of securing loans by using movable property as collateral. Traditionally, only fixed property was accepted as means of security, creating a barrier for businesses that have not yet developed any asset base. On the other hand, the Programme has also supported the finalization of the Credit Reporting Act and regulations, as well as the establishment of the Credit Information Bureau, which currently trades under the auspices of Compuscan.
Finally, the Programme on improving the business environment will also focus on providing technical assistance to modernize Insolvency Proclamation and ensure that it is coherent with the liquidation provisions in order to align with international best practices on insolvency management.