Georgetown, Guyana, September 27,
2013 – IFC, a member of the World Bank Group, has helped the Bank
of Guyana establish the country’s first credit reporting system, which
will enable local financial institutions to share credit information and
better manage lending risks to ultimately boost access to finance for individuals
and small businesses. CreditInfo Guyana, which officially launches its
operations today, was chosen by the Bank of Guyana as the country’s first
licensed credit bureau.
Consumers and small and medium businesses
in emerging markets are considerably less likely to obtain a loan than
those in developed markets due to lack of information about their credit
history. A credit reporting system, governed by robust legal and regulatory
frameworks, helps provide information on borrowers in an effort to ease
financing constraints. IFC studies conducted in 51 countries show the percentage
of firms reporting financing constraints declined from 49 percent to 27
percent after credit bureaus opened in their regions.
With support from Canada’s Department
of Foreign Affairs, Trade and Development, IFC helped the Bank of Guyana
gain the expertise to solicit and evaluate potential credit bureau operators.
It also provided technical assistance which allowed the Bank of Guyana
to develop the Credit Reporting Act of 2010 and related regulations. This
support laid the groundwork for the country to license CreditInfo Guyana.
"Credit bureau services will benefit
financial institutions and credit providers in Guyana, but most importantly
they will benefit the people by allowing lenders to extend more credit,"
said Governor Lawrence Williams of the Bank of Guyana. "The bureau
will enable access to finance for consumers and entrepreneurs, while also
encouraging them to be responsible in their financial commitments. In a
market such as Guyana, this can have a dramatic impact on economic development.”
Since 2009, IFC has helped central banks
in the Caribbean develop the legal and regulatory frameworks that underpin
credit reporting systems. The Bahamas, Belize, Haiti, the Organization
of Eastern Caribbean States, and Suriname are also developing credit bureau
legislation. IFC has been working with central banks in the region to organize
a series of conferences aimed at sharing local expertise and transforming
the Caribbean’s credit culture.
“Credit bureaus are important to avoid
over indebtness. A credit reporting system in Guyana should help open doors
for small and medium-sized enterprises by increasing access to credit that
will in turn enable them to grow, create jobs and benefit the overall economy,”
said Ghada Teima, IFC Access to Finance manager for Latin America and the
Caribbean. “IFC’s Caribbean Credit Bureau Program has been effective
in strengthening the financial infrastructure in numerous countries in
the region.”
About IFC
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org
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