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Credit Bureaus to be laucnhed in Azerbaijan after two years

23 June 2011 10:29 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. Credit Bureaus are expected to launch in Azerbaijan in March of 2013, IFC project manager in Azerbaijan Teymur Heybatov said.

To him, draft law on credit bureauâ€™s activity is currently discussed at the CBA: â€œWe appreciate this draft law. At the same time, we have prepared business plan on credit bureau and this document is being discussedâ€.

Heybatov noted that if the draft law was submitted to the parliament in autumn of 2011 and if it was passed in spring of 2012, then credit bureaus would start to operate in March, 2013: â€œAfter the acceptance of the draft law several legal issues must be solved, then â€“ in autumn of 2012, a technical partner must be selected and this partner must start to work within the next 6 monthsâ€.

IFC official also said that credit bureau would have 5 shareholders. At the same time, international finance organization will be attracted here too: â€œThe bureau will organize the sale of gathered information, foreign partner will solve the issue related to softwareâ€.

Note that, Credit Bureau will be established within framework of IFCâ€™s project â€œStrengthening of financial infrastructure in Azerbaijan and the Central Asiaâ€. The Bureau will help to reduce the risks and troubled loans, as well as operating costs when lending to finance sector, including increase the number of new loans.

Credit bureaus will collect information about organizations involved in small and medium-sized businesses, as well as borrowers-individuals. Full office activities will be available within 2 years after the opening, and the accumulation of capital will require 9 months. According to a survey IFC, 53% of banks operating in Azerbaijan expressed desire to participate in the capital bureau, while 47% rejected it.

Remind that, CBA will control the activity of credit bureaus. Currently, centralized credit registry is operating under the CBA.