The World Bank Group is supporting the creation of a new association designed to help strengthen credit reporting practices and bolster access to finance in Europe and Central Asia.
According to IFC Tajikistan, The World Bank Group in cooperation with Azerbaijan’s Financial Market Supervisory Authority hosted a signing ceremony in Baku yesterday to establish the Association of Credit Information Providers in Europe and Central Asia.
It includes credit registries and bureaus from Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Tajikistan, Ukraine, and Uzbekistan.
The World Bank Group’s Azerbaijan-Central Asia Financial Infrastructure project provided advice on creating the new association, which will help strengthen the region’s financial infrastructure by improving risk management methodologies and sharing experiences.
The project is implemented by IFC and funded by Switzerland’s State Secretariat for Economic Affairs (SECO).
The new association is expected to help boost financial stability in member countries. Exchanging experiences in the relevant field will help in improving the credit reporting system and developing private credit bureau services, as well as improving access to finance.
IFC experts note that securing loans and other financing is often a major challenge for businesses in Europe and Central Asia. Effective credit sharing systems can help promote lending, boost private sector growth, and address problems like unemployment and slow economic growth over the long term.
The World Bank Group is one of the world's largest sources of funding and knowledge for developing countries. It comprises five closely associated institutions: The International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA), which together form the World Bank; the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Each institution plays a distinct role in the mission to fight poverty and improve living standards for people in the developing world.
