IFC to Help Jordan introduce Credit Bureau Legislation, Support Smaller Businesses
In Cairo, Egypt:
Riham Mustafa
Phone: +202 24 619 140
Fax: +202 24 619 145
E-mail: rmustafa@ifc.org
Amman, Jordan, December 3, 2008—IFC,
a member of the World Bank Group has signed an agreement with Jordan to
support the Middle Eastern country’s efforts to establish a legal framework
for credit bureaus, institutions that will help individuals and smaller
businesses access finance, boosting the overall economy.
IFC will work with Jordan’s Ministry of Industry and Trade to help the
country draft and adopt new legislation that will regulate the sharing
of credit information. IFC will also help raise awareness among the private
and public sectors about the economic benefits of credit reporting.
IFC Financial Markets Program Manager for the Middle East and North Africa,
Thomas Jacobs, said: “The existence of accurate information helps banks
and other lenders assess the creditworthiness of individuals and small
businesses and their ability to pay back a loan. This minimizes the risk
of nonperforming loans and prevents customers from being overly in debt.”
Credit bureaus are vital to helping increase access to finance for individuals
and businesses and play an important role in emerging economies. They give
banks and other financial institutions confidence to expand their lending
and to make faster loan decisions by providing transparent and detailed
customer credit information.
To help raise awareness of the benefits of credit bureaus, IFC, with Jordan’s
government, today spoke with senior managers of commercial banks and government
officials who will be instrumental in developing a private sector credit
bureau industry.
Participants discussed the role of credit reporting in modern risk management
and in increasing access to finance. They analyzed the components of an
enabling regulatory environment and the challenges of establishing private
credit bureaus.
The long-term goals of Jordan’s credit bureau program are to increase
the efficiency of financial institutions, to support the growth of smaller
businesses, and to mitigate lending risks.
IFC’s work in Jordan is focused on supporting improvements to the country’s
overall business environment, which includes helping the government improve
leasing regulations, corporate governance for banks, and SME management
training.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster 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. Our new investments totaled $16.2
billion in fiscal 2008, a 34 percent increase over the previous year. For
more information, visit www.ifc.org.
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