IFC Prepared to Provide Technical Assistance to Develop Credit Register in Azerbaijan
Azerbaijan, Baku, 21 April /corr. Trend I.Khalilova / The International Finance Corporation (IFC) is prepared to expand the project of technical assistance to develop leasing in Azerbaijan and Central Asia and support the re-formation of the Centralized Credit Register (CCR) of the National Bank of Azerbaijan (NBA), the Head of the project in Azerbaijan, Teymur Eybatov, said on 21 April.
According to him, technical assistance may be directed towards attracting consultants and holding training sessions. The directions of assistance to the credit register in the region will be determined during the regional conference due on 21-24 May in Prague. The representatives of the NBA and other organizations may receive an opportunity to become familiar with the work of credit bureaus in the Czech Republic and legislation in this regard.
Centralized Credit Register was established in March 2005. The Credit Register is one of the tools of the bank risk management. Currently the NBA works to improve the register through expanding its coverage. Today only banks use the Credit Register, but the range of users may be expanded only after full automation of the credit register.
The NBA commenced talks with the banks regarding the transfer of information exchange from the credit register to on-line. It will provide an opportunity to automatically receive necessary information for inspection of credit history on the website, but currently this information is provided by the NBA to the banks offline.
Changes are planned to be made to the Charter on Centralized Credit Register to improve the activity of the Register, increase reliability and accelerate information exchange process.
According to the strategy of the NBA, there are plans to transfer the Register to the management of commercial banks after realizing the measures to develop the credit register. The NBA considers that after one-and-a-half or two years, the Register may be ready for effective and further institutional development outside NBA. This is the strategic goal of the NBA and depends on the improvement in the system of credit register as well as the preparedness of the banks. Yet the system does not work at full capacity and will depend on how intensively the banks will use its services.
The correspondent can be contacted at: [email protected]