DUSHANBE February 26, 2009, Asia-Plus — IFC, a member of the World Bank Group, is helping train banks and microfinance institutions in Tajikistan on how to prevent and mitigate the financial crisis impact on the Tajikistan banking sector.
With this purpose it conducted a seminar in Dushanbe last week, press release issued by the IFC Dushanbe Office today said.
The seminar provided the tools to financial institutions in order to improve their credit portfolios by means of improving credit risk and delinquency management skills.
IFC hosted a two-day seminar “Delinquency and Risk Management during the Period of Financial Crisis” in Dushanbe, Tajikistan that brought together commercial banks and microfinance institutions. It included sessions on credit risk and bad debt management.
Under current conditions of market instability, when the banks while extending their loans and managing their portfolios need to evaluate risks more rigorously, the issue of delinquency management becomes especially important. The key elements of good credit portfolio management are: efficient asset and liability management, adequate portfolio and credit risks management in accordance with international practices and recent lending trends.
“One of key pitfalls to credit market operators is the default risk. The banks are realizing the need for good risk management practices and are trying to develop and implement solid risk and default management regimes,” – said Garth Bedford, IFC Program Manager. “Within the global assistance aimed at financial crisis impact mitigation, IFC is providing support to credit institutions to support them in this process allowing them to reduce their risks of losses and operate in a sustainable manner.”
Launched in 2008, the IFC Non Performing Loan and Risk Management Program is focused on providing support to the financial sector and delivering in-depth advisory service to financial institutions to improve their ability to navigate through the fallout from the global financial crisis as effectively as possible. Initial activities have recently been launched to support financial institutions through strengthening of their non performing loans and risk management functions. A seminar on delinquency management was delivered in Bishkek, Kyrgyzstan in December 2008 for 24 banking specialists from 11 financial institutions which is being replicated in Dushanbe and throughout the region.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. It fosters 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. IFC’s new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year.
