IFC will work with the respective governments and financial institutions to establish and strengthen credit information sharing systems and introduce formal education in risk management and certification for financial institution employees. It also will help increase public awareness of the benefits of credit information sharing systems and risk management. This initiative is part of the Azerbaijan-Central Asia Financial Markets Infrastructure Advisory Services Project.

IFC held roundtables and training sessions on credit bureau basics and practices over last two months in each country. The roundtables brought together high- level decision-makers and potential shareholders in private credit bureaus, and stressed the importance and benefits of credit information sharing. The two-day seminars that followed the roundtables provided middle management from financial intermediaries and credit information sharing institutions with a review of key issues related to private credit bureau operations.

“We are very interested in developing credit information exchange mechanisms in the country and believe that with IFC’s help we’ll be able to establish a successful credit bureau with a wide scope of activity serving creditors and borrowers at the highest level,” said Elchin Habibov, Head of the Central Bank’s Centralized Credit Registry Services in Azerbaijan.

“Supporting development of small enterprises by providing long-term and sustainable access to finance is a Swiss government priority in Tajikistan,” said Rudolf Schoch, Country Director, Swiss Cooperation Office in the Tajikistan. “The project will help financial institutions make faster and accurate credit decisions, increasing the availability and affordability of financial services for individual consumers and SMEs.”

Effective credit information sharing systems are critical to expanding access to credit for both individuals and small businesses. Credit bureaus allow financial institutions to get timely, credible, and objective information on borrowers, reducing loan processing time and credit defaults.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with the IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by developing financial infrastructure to expand access to finance for people and smaller businesses in the region.