Azerbaijani banks signal willingness to become founder of private loan bureau
Azerbaijan, Baku, Oct. 8 / Trend , N.Ismayilova/
The founders of the private credit bureau that will be created in Azerbaijan within the project of development of financial infrastructure in Azerbaijan and Central Asia (except Kazakhstan and Turkmenistan), developed by the International Finance Corporation (IFC), will be the local banks and microfinance institutions, said Anastasia Marina, the IFC Project Manager in Azerbaijan and Central Asia.
"As the founders of a credit bureau, we see banks and microfinance organizations," said Marina. "We asked the banks and IFC in this regard, how they are interested, and more than half of surveyed organizations have expressed interest to become the founders of the private credit bureau."
She said a credit bureau will be established jointly with adopting the law on credit bureaus, because this bill creates the conditions for the private credit bureau.
Central Bank of the country introduced a bill to the Cabinet and now it is under voting," said Marina.
Establishment of the private credit bureau with the support of IFC will improve credit risk management, reduce information asymmetry between lenders and borrowers, thereby reducing the credit risk, financial institutions and the economy as a whole, and positive credit debt will open for potential borrowers access to funds on a broader scale.
The project of financial infrastructure development in Azerbaijan and Central Asia will be implemented with support of SECO.
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