Tashkent, Uzbekistan (UzDaily.com) -- IFC, a member of the World Bank Group, is reinforcing its work with credit bureaus to help lenders identify and avoid client over-indebtedness. As part of its response to the global financial crisis and support of financial markets, IFC launched an initiative in 2008 to develop legislation related to sharing credit information in Azerbaijan and Central Asia. The first of its kind in the region, the initiative will help stabilize the financial market by enabling financial institutions to continue providing financing, even in times of financial difficulty.

To support this effort, in November 2008, IFC conducted seminars and discussions on the development of credit bureau legislation and best practices to help explain the necessity of sharing credit information. More than 200 representatives from government agencies and the financial sectors of Azerbaijan, Kyrgyz Republic, Tajikistan, and Uzbekistan participated in the events.

“This is an important and timely initiative that will help us develop and adopt a new law on credit bureaus to support our financial system,” said Kobuljon Tashmatov, member of Uzbekistan’s Committee on Budget and Economics.

Nataliya Mylenko, Manager of the IFC Global Credit Bureau Program, said, “Credit bureaus are important for the stability and effective operation of financial markets. They allow financial institutions to reduce loan processing time and cost, resulting in lower interest rates and making credit more affordable for those who need it most.”

As a result of IFC’s efforts, discussions with key stakeholders in Tajikistan have helped finalize the country’s credit bureau law, which was sent to parliament in November. In the Kyrgyz Republic, IFC’s seminar was the main catalyst for establishing a working group on credit information systems that will work to develop necessary legislation in the country. For Azerbaijan and Uzbekistan, IFC recommended credit bureau laws which are now being reviewed by the governments of each country and are expected to be adopted next year.

This initiative, part of the IFC Azerbaijan-Central Asia Leasing Facility Advisory Services Project, is funded by the Swiss State Secretariat for Economic Affairs.