Bishkek, Kyrgyz Republic, December 25,
2009—IFC, a member of the World Bank Group, is partnering with the
government of Switzerland in launching a three-year project to strengthen
financial market infrastructure and improve access to finance for small
and medium enterprises in Azerbaijan, Kyrgyz Republic, Tajikistan, and
IFC will work with the respective governments and financial institutions
to establish and strengthen credit information sharing systems and introduce
formal education in risk management and certification for financial institution
employees. It also will help increase public awareness of the benefits
of credit information sharing systems and risk management. This initiative
is part of the Azerbaijan-Central Asia Financial Markets Infrastructure
Advisory Services Project.
IFC held roundtables and training sessions on credit bureau basics and
practices over last two months in each country. The roundtables brought
together high- level decision-makers and potential shareholders in private
credit bureaus, and stressed the importance and benefits of credit information
sharing. The two-day seminars that followed the roundtables provided middle
management from financial intermediaries and credit information sharing
institutions with a review of key issues related to private credit bureau
“We are very interested in developing credit information exchange
mechanisms in the country and believe that with IFC’s help we’ll be able
to establish a successful credit bureau with a wide scope of activity serving
creditors and borrowers at the highest level,” said Elchin Habibov,
Head of the Central Bank’s Centralized Credit Registry Services in Azerbaijan.
“Supporting development of small enterprises by providing long-term and
sustainable access to finance is a Swiss government priority in Tajikistan,”
said Rudolf Schoch, Country Director, Swiss Cooperation Office in the Tajikistan.
“The project will help financial institutions make faster and accurate
credit decisions, increasing the availability and affordability of financial
services for individual consumers and SMEs.”
Effective credit information sharing systems are critical to expanding
access to credit for both individuals and small businesses. Credit bureaus
allow financial institutions to get timely, credible, and objective information
on borrowers, reducing loan processing time and credit defaults.
IFC is the only international financial institution focused exclusively
on the private sector, the engine of sustainable development in emerging
markets. Along with the IBRD, it is currently seeking a capital increase
to strengthen its ability to create opportunity for the poor in developing
countries—including by developing financial infrastructure to expand access
to finance for people and smaller businesses in the region.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
About Switzerland’s support
Swiss funding for the project is provided by the State Secretariat for
Economic Affairs, the Swiss Confederation’s competence center for all
core issues related to economic policy. Its aim is to create basic regulatory
and economic policy conditions to enable business to flourish and benefit
all. SECO also represents Switzerland in the large multilateral trade organizations
and international negotiations, and is involved in efforts to reduce poverty
and help developing countries with transition economies build sustainable
democratic societies and viable market economies. Each year, Switzerland
spends about $1.5 billion on development cooperation and transition assistance
to developing countries. For more information, visit www.sdc.admin.ch.