Chisinau, Moldova, October 21, 2022—To bolster its help for Ukrainians amid the ongoing war, IFC and Biroul de Credit, a major credit bureau in Moldova, announced the launch of a new mechanism to support Ukrainian refugees. The goal is to enable Moldova to offer more financial and non-financial services to people who were forced to flee the war in Ukraine, boosting the economic resilience of both countries and creating jobs.
According to the UN, since February 24, nearly 421,000 Ukrainian refugees have fled to Moldova, with around 100,000 deciding to stay in the country. But Moldova's financial institutions have struggled to handle the sudden influx of potential customers, because of the lack of an international data exchange system. The Russian invasion of Ukraine also triggered a deep economic crisis in Moldova, with its growth forecast dropping to zero in 2022.
To help address the challenge, IFC supported the Biroul de Credit and the Ukrainian Bureau of Credit Histories in establishing a partnership that will help Moldova put in place its first cross-border electronic data exchange mechanism. IFC helped these credit bureaus audit the legal framework and assess the possibilities of international data exchange and effective data utilization among financial institutions in the two countries. The new instrument will allow those institutions to access credit histories of Ukrainian refugees seeking banking and other services in the host country.
"This pioneering initiative will allow Ukrainian citizens to show the positive credit history they earned back home and build trust with a future employer, and access finance from banks and other financial institutions. In turn, Moldovan banks and financial institutions will be able to provide access to financing based on the full identity of the borrower, similar to financing in the domestic market," said Silviu Foca, Director General at Biroul de Credit S.R.L.
The new Digital Data Corridors initiative, implemented in partnership with the Swiss State Secretariat for Economic Affairs SECO and the UK's Good Governance Fund (GGF), will help financial institutions in Moldova work electronically across borders and verify identities, and receive bank transaction data in real time. With this information, Ukrainian refugees in Moldova will have better access to credit cards and loans, among others, while banks can serve new customers safely, according to regulations.
"This partnership aims to provide direct assistance to Ukrainians who have been forced to leave their country and temporarily relocate to neighboring countries. This is the first time a credit bureau in Moldova has participated in an international data exchange network," said Lisa Kaestner, IFC's Regional Manager for Ukraine and Moldova. "This step toward integration of financial systems is critical to help Ukrainian refugees rebuild their lives away from their home."
The data exchange mechanism is already operational in Poland, Georgia, Latvia, Lithuania, Slovakia, and the Czech Republic. IFC is organizing a series of events across the countries, including Moldova, to further equip banks with the tools they need to tailor financial services to refugees' needs.
IFC is also working on the Ukraine Resilience Program, which will support projects in Ukraine. During the war, it will prioritize financing to support business preservation, displaced people and affected municipalities, and immediate logistics and energy needs. It will also support activities to help prepare for Ukraine's reconstruction, which will need significant private sector support.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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For more information about the Biroul de Credit in Moldova, visit: https://www.creditbureau.md/
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