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Azerbaijani credit bureau to expand in 1-2 years

Business Materials 22 December 2009 17:30 (UTC +04:00)

Azerbaijan, Baku, Dec. 22 / Trend I. Khalilova /

The Central Bank of Azerbaijan (CBA) opened a database providing access to the Central Credit Registry (CCR) to non-bank credit organizations (NBCO), said CCR head Elchin Habibov Dec. 21

"NBCO will join the CCR in 2010 after the enactment of a law on non-bank credit organizations. The law might be adopted in the third parliamentary reading by late 2009," Habibov said.

According to Habibov, other organizations can be connected to CCR at a later stage. The first credit bureau will be established on the CCR's basis in Azerbaijan.

A project to improve financial infrastructure is underway with the support of the International Finance Corporation and Seco. The project will create the first private credit bureau in the country.

In accordance with the world practice, such bureaus gives credit accounting in their first year of establishment. In the next three years, such bureaus produce qualitative changes and expand the scope of their activities, Habibov added.

Over its five years of activities, the CCR created a database of 680,000 borrowers.

According to Habibov, the CCR can work with both non-banking credit organizations and banks. Leasing, insurance companies, mobile operators, utility organizations, and postal banks can obtain information from the credit bureau in the future.

However, these organizations should make adequate technical changes and establish an interface with the credit bureau, which requires huge investments, Habibov underscored.

Some 38 banks used the credit registry in 2009 compared to 17 banks in 2008. 

The CCR was established in 2005 under a law on banks. All Azerbaijani commercial banks must submit data to the registry, whose services may obe used nly by Azerbaijani banks and their branches in Azerbaijan. Access to information is chargeable: 1.1 manat for individuals and 2.2 manat for legal entities. The CCR is not a commercial institution.

Norway Registers Development is the project consultant. The project is implemnted by R.I.S.K. The World Bank financed the CCR's establishment under a contract amounting to $190,000.

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