DUSHANBE, September 28, Asia-Plus — The National Bank of Tajikistan (NBT) is currently elaborating a draft law on credit history, Asia-plus ahs learned from Shamsullo Davlatov, the head of the NBT legal department.
According to him, they have also received proposals and resolutions from the commercial banks and the Association of Microfinance Organizations of Tajikistan.
“After finalization, the draft law will be sent to relevant ministries and organizations for consideration,” said Davlatov, We want this draft law to be included on the plan of work of the government for 2008.”
To elaborate the bill Tajik specialists has studied experience of Kyrgyzstan, Kazakhstan and the Russian Federation, where the credit history law has already been adopted, the NBT official said.
This law will allow banks having information about borrower, his or her previous commitments that will allow bringing down bank’s risks in the event if loans are not cleared off.
Credit history or credit report is a record of an individual”s or a company”s past borrowing and repaying, including information about late payments and bankruptcy.
When a customer fills out an application for credit from a bank, store or credit card company, his or her information is forwarded to a credit bureau, along with constant updates on the status of his or her credit accounts, address, or any other changes made since the last time he or she applied for any credit.
This information is used by lenders to determine an individual”s or entity”s credit worthiness; that is, determining an individual”s or entity”s means and willingness to repay indebtedness. This helps determine whether to extend credit, and on what terms. With the adoption of risk-based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR).
