IFC holds a seminar in Azerbaijan on Development of Credit Information Sharing Systems

IFC holds a seminar in Azerbaijan on Development of Credit Information Sharing Systems
# 21 November 2008 10:41 (UTC +04:00)
Baku. Nijat Mustafayev, Elnur Huseynguluyev – APA-Economics. IFC, a member of the World Bank Group has partnered with Azerbaijan Microfinance Association (AMFA) to hold a seminar on development of credit information sharing systems.
The main goal of this seminar was for IFC and AMFA to secure support of participants for the development of a private credit bureau. Approximately 40 seminar participants, including Azerbaijani government officials, experts from Azerbaijan Banking Association, and SCHUFA, one of the oldest credit bureaus in the world, discussed credit bureau benefits, international trends and country-specific issues related to the development of a private credit bureau in Azerbaijan.
The sharing of the credit information enables the creditors make better lending decisions and increases the borrowers’ chances of getting loans, based on sound credit records. It stimulates sustainable development of the financial system of the country,” said Elchin Habibov, Head of Credit Registry, National Bank of Azerbaijan.
“Credit bureaus are important for the development of the small business sector. They enable financial institutions to provide financing to small businesses by offering timely, credible, and objective information on borrowers, allowing financial institutions to reduce loan processing time and cost by 25 percent on more and cut default rates by 40 to 80 percent. These savings can result in lower interest rates, making credit more affordable and available to those who need it most. As a part of IFC’s global response to the financial crisis, we is reinforcing our work with credit bureaus which helps lenders identify and avoid clients’ over-indebtedness," said Nataliya Mylenko, Program Manager, IFC Global Credit Bureau Program.
IFC has promoted credit bureau development in over 45 emerging markets, providing legal and regulatory advice, feasibility studies, direct assistance to credit bureaus, research, public awareness projects, and long-term coaching and advice. IFC has set up or significantly strengthened credit bureaus in 10 countries. In 2007, credit bureaus supported an estimated $17 billion in financing to retail and small borrowers.
IFC delivered this seminar through its Azerbaijan-Central Asia Leasing Facility Advisory Services Project. The project works with the governments of Azerbaijan, Kazakhstan, the Kyrgyz Republic, Tajikistan and Uzbekistan as well as the local private sector to expand leasing for smaller businesses. Since 2001, the project contributed to a market growth in leasing of $234.1 million in Azerbaijan and Central Asia since 2001.
The IFC Azerbaijan-Central Asia Leasing Facility Advisory Services Project is funded by the Government of Switzerland.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.
The State Secretariat for Economic Affairs is the Swiss Confederation’s competence center for all core issues related to economic policy. Its aim is to create basic regulatory and economic policy conditions to enable business to flourish and benefit all. SECO also represents Switzerland in the large multilateral trade organizations and international negotiations, and is involved in efforts to reduce poverty and help developing countries with transition economies build sustainable democratic societies and viable market economies. Each year, Switzerland spends about $1.5 billion on development cooperation and transition assistance to countries.
Switzerland is active in Azerbaijan since 2001. Each year, Switzerland spends about $6 million on transition assistance to Azerbaijan as a non-reimbursable contribution in different areas like: corporate governance, leasing, primary mortgage, government securities market, intellectual property rights or water management
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