The International Finance Corporation (IFC), part of the World Bank group, has supported the first private credit bureau in Tajikistan in acquiring a licence from the Central Bank, CA-News reported on Friday with the reference to the corporation's office in Dushanbe.
"Creation of a credit bureau covering credit history plays an important role in enhancing the banking system's stability. Meeting the challenges facing the credit bureau will reduce credit risks, as well as provide a more effective use of information about dishonest borrowers," the head of the National Bank of Tajikistan (NBT) Abdujabbor Shirinov said.
As IFC Representative Fabrizio Fraboni noted, the issued licence is recognition of the progress made by the credit bureau. He said this event is "a significant step forward in the creation of a centre to exchange credit information for the Tajik financial market."
"It also shows the strong support of the National Bank and cooperation between all interested parties. We hope that the credit bureau will be a successful example of leading practice for the entire Central Asian region," Fraboni added.
The credit bureau envisages strengthening the financial infrastructure and improving access to financing small and medium enterprises, as well as entrepreneurs in Tajikistan. The licence issued in late December 2012 will allow the credit bureau to start an exchange of credit information. It will be authorised to officially start operations on the collection and exchange of information on borrowers with financial institutions.
With the start of the bureau's operation, the financial institutions and other potential clients (mobile operators and enterprises providing services to population) will have access to accurate and objective information on borrowers allowing them to reduce the terms of credit issuance for small and medium businesses, as well as the level of non-compliance with obligations.
'With the support of the IFC, the Tajik government and the financial sector are making significant efforts to create favourable conditions for the development of a system on credit information exchange. As a result, new legislation was adopted in April 2010 regulating the exchange of credit information, as well as the first private credit information bureau', the corporation's office stated.
Currently, the IFC works with shareholders of the credit bureau, local financial institutions and other interested parties to assist the bureau in starting its operational activity.