Teymur Heybatov, a representative of the Azerbaijan-Central Asia Financial Markets Infrastructure (ACAFI) advisory services project of the World Bank Group’s International Finance Corporation (IFC), reportedly has announced that a meeting will be held with the leadership of the Azerbaijan Microfinance Association (AMA) to discuss establishing a credit bureau for microfinance institutions (MFIs) in Azerbaijan. ACAFI aims to improve legal and regulatory frameworks for credit information sharing and “build the capacity of financial intermediaries to improve credit underwriting policies and practices.” The First Credit Bureau Executive Committee (FCBEC), which was established by AMA to study the issue of creating a credit bureau, is accepting proposals through approximately August from seven organizations to operate the credit bureau. The five of these that have been named publicly are the France-based Representative Council of the French Jewish Institutions, an umbrella organization of French Jewish organizations, US-based nonprofit Erasia Foundation and the following private companies: Singapore-based InfoCredit Holding, South Korea-based Nice Information Service, and Germany-based CreditInfo. FCBEC has not released a projected date by which the bureau will be up and running.
As of May 2013, the following 10 Azerbaijani banks have signed a memorandum of understanding regarding their participation in the proposed credit bureau: AccessBank, Azerigas Bank, DemirBank, Pasha Bank, Azerbaijan Industry Bank, Mugan Bank, Turan Bank, Bank Respublika, YapiKredi Bank Azerbaijan and Unibank.
As of 2012, IFC has 184 member countries, total assets of USD 75.8 billion, return on assets (ROA) of 1.8 percent and return on equity (ROE) of 6.5 percent.
By Makai McClintock, Research Associate
About International Finance Corporation (IFC)
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC has 184 member countries, total assets of USD 75.8 billion, return on assets of 1.8 percent, return on capital of 6.5 percent and USD 15.5 billion mobilized to 576 projects.
Sources and Additional Resources
ABC.AZ Article, “Microfinance Institutions Study Issue of Entering into Credit Bureau in Azerbaijan,” http://abc.az/eng/news/main/73391.html
International Finance Corporation, “About ACAFI Project,” http://www1.ifc.org/wps/wcm/connect/regprojects_ext_content/ifc_external_corporate_site/acafi_home/aboutacafiproject
MicroCapital Story, May 14, 2013, “MICROCAPITAL BRIEF: IFC, Canadian International Development Agency (CIDA), Atlantic Bank of Belize Extend Effort to Improve Access to Small, Medium-Sized Enterprises, Increase Portfolio to $35m by 2014,”
https://www.microcapital.org/microcapital-brief-ifc-canadian-international-development-agency-cida-atlantic-bank-of-belize-extend-effort-to-improve-access-to-small-medium-sized-enterprises-increase-portfolio-to-35m-by-201/
MicroCapital Story, January 2, 2013, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Loans $5m to La Nacional of the Dominican Republic for Housing, Small and Medium-Sized Enterprise (SME) Lending,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-5m-to-la-nacional-of-the-dominican-republic-for-housing-small-and-medium-sized-enterprise-sme-lending/
MicroCapital Story, November 17, 2011, “MICROCAPITAL BRIEF: International Finance Corporation (IFC) Mobilizes $40m to Support Peruvian Microfinance Institution Mibanco,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-mobilizes-40m-to-support-peruvian-microfinance-institution-mibanco/
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