Bishkek, Kyrgyz Republic, December 16,
2008—IFC, a member of the World Bank Group, is reinforcing its work
with credit bureaus to help lenders identify and avoid client over-indebtedness.
As part of its response to the global financial crisis and support of financial
markets, IFC launched an initiative in 2008 to develop legislation related
to sharing credit information in Azerbaijan and Central Asia. The first
of its kind in the region, the initiative will help stabilize the financial
market by enabling financial institutions to continue providing financing,
even in times of financial difficulty.
To support this effort, in November 2008, IFC conducted seminars and discussions
on the development of credit bureau legislation and best practices to help
explain the necessity of sharing credit information. More than 200 representatives
from government agencies and the financial sectors of Azerbaijan, Kyrgyz
Republic, Tajikistan, and Uzbekistan participated in the events.
“This is an important and timely initiative that will help us develop
and adopt a new law on credit bureaus to support our financial system,”
said Kobuljon Tashmatov, member of Uzbekistan’s Committee on Budget and
Economics.
Nataliya Mylenko, Manager of the IFC Global Credit Bureau Program, said,
“Credit bureaus are important for the stability and effective operation
of financial markets. They allow financial institutions to reduce loan
processing time and cost, resulting in lower interest rates and making
credit more affordable for those who need it most.”
As a result of IFC’s efforts, discussions with key stakeholders in Tajikistan
have helped finalize the country’s credit bureau law, which was sent to
parliament in November. In the Kyrgyz Republic, IFC’s seminar was the
main catalyst for establishing a working group on credit information systems
that will work to develop necessary legislation in the country. For Azerbaijan
and Uzbekistan, IFC recommended credit bureau laws which are now being
reviewed by the governments of each country and are expected to be adopted
next year.
This initiative, part of the IFC Azerbaijan-Central Asia Leasing Facility
Advisory Services Project, is funded by the Swiss State Secretariat for
Economic Affairs.
About IFC
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 $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
About SECO
The State Secretariat for Economic Affairs is 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.
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