Credit bureau to ex­pand cov­er­age of in­for­ma­tion on bor­row­ers, Su­per­vi­sory Body

Azer News - - Business - By Amina Nazarli

The es­tab­lish­ment of a pri­vate credit bureau will help im­prove Azerbaijan's po­si­tion in the World Bank's Do­ing Busi­ness re­port.

Asim Zulfu­garov, the deputy ex­ec­u­tive di­rec­tor of the Fi­nan­cial Mar­ket Su­per­vi­sory Body an­nounced about this at an event ded­i­cated to es­tab­lish­ment of the coun­try’s first Pri­vate Credit Bureau in Baku on April 19.

Zulfu­garov said the cre­ation of pri­vate credit bureau will al­low in­crease the cov­er­age of in­for­ma­tion on bor­row­ers.

"The Cen­tral­ized Credit Reg­is­ter of Azerbaijan [op­er­at­ing since 2005] re­ceived in­for­ma­tion only about 36 per­cent of the adult pop­u­la­tion," Zulfu­garov said.

For­ma­tion of credit his­to­ries of bor­row­ers in Azerbaijan be­gan in 2005 af­ter the es­tab­lish­ment of the Cen­tral­ized Credit Reg­istry Ser­vice (CCR). The reg­is­ter cov­ers the full range of in­for­ma­tion on banks, non­bank credit in­sti­tu­tions, bor­row­ers, own­ers of large par­tic­i­pa­tion pack­ages in the cap­i­tal of bor­row­ers, loans and pledges for them.

The founders of the first Pri­vate Credit Bureau in­clude 21 or­ga­ni­za­tions, among them 19 banks, one in­sur­ance com­pany and one non-bank credit or­ga­ni­za­tion. To­gether with them, the list of founders in­cludes a tech­ni­cal part­ner - Cred­it­info, which owns 51 per­cent of the shares of the bureau.

CEO of Cred­it­Info Group Reynir Gre­tars­son, ad­dress­ing the event, said that Elchin Ah­madov, former ad­vi­sor to the chair­man of the board at the In­ter­na­tional Bank of Azerbaijan (IBA), was ap­pointed as ex­ec­u­tive di­rec­tor of the com­pany Cred­it­info Azerbaijan, which will be­come a man­ager of the first Pri­vate Credit Bureau.

Gre­tars­son said that in to­tal, the Board of Di­rec­tors of the com­pany in­cludes nine peo­ple.

He said the credit bureau will re­ceive in­for­ma­tion not only from banks but also in­sur­ance and leas­ing com­pa­nies, mo­bile op­er­a­tors and others.

“The pri­vate credit bureau will help credit in­sti­tu­tions re­duce their costs, bet­ter as­sess risks and in­crease the avail­abil­ity of credit prod­ucts [for the pop­u­la­tion],” he added.

Elchin Ah­madov, who talked to re­porters on the side­lines of the event, said that the first Pri­vate Credit Bureau in Azerbaijan will switch to a full-fledged mode of oper­a­tion dur­ing 2017.

"It is too early to talk about spe­cific dead­lines, but the mar­ket is ready for this kind of in­for­ma­tion, and the ques­tion re­mains to in­crease the in­for­ma­tion [about bor­row­ers] and to fa­mil­iar­ize the fi­nan­cial sec­tor with the broader range of ser­vices that the bureau will pro­vide," Ah­madov said.

Any­one, once a year will be able to ob­tain in­for­ma­tion about him/her col­lected in the credit bureau through ASAN ser­vice, ac­cord­ing to Ah­madov.

He also noted that the pri­vate credit bureau is in­ter­ested in ex­pand­ing the num­ber of par­tic­i­pants. "We be­lieve that the mem­ber­ship of the credit bureau will ex­pand, and our task is to in­volve as many credit or­ga­ni­za­tions as pos­si­ble in this process," the ex­ec­u­tive di­rec­tor said.

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