Sana'a, Yemen, March 26, 2014
— IFC, a member of the World Bank Group, is helping the Central Bank of Yemen (CBY) reform its credit reporting framework, part of wider efforts to improve the country’s financial infrastructure, facilitate lending for smaller businesses, and boost economic growth.
IFC will help CBY establish and operate a new public credit registry—a platform to collate the credit information of borrowers—and will also support CBY in developing a legal and regulatory framework for credit reporting. Yemen ranks 170 out of 198 economies on the World Bank’s Getting Credit Indicator, and these reforms offer CBY—and other Yemeni banks and microfinance institutions—the tools to manage credit risks with a view to expand lending operations and foster financial inclusion.
“Accurate credit information is a prerequisite for sound risk management and financial stability,” said Mohamed Awad Bin Humam, Governor of CBY. “Our partnership with IFC will help us bring Yemen’s credit reporting infrastructure in line with international standards, helping businesses obtain the financing they need to grow and contribute to Yemen’s economy.”
The new public credit registry will allow individuals and companies build positive credit histories, which will facilitate access to credit by reducing lending costs and collateral requirements.
“Fostering a solid credit reporting infrastructure is vital for creating a healthy financial sector and expanding access to finance for small businesses, a strategic priority for IFC,” said Xavier Reille, IFC Regional Manager of Access to Finance Advisory Services in the Middle East and North Africa. “The new credit registry will contribute to financial stability and will help banks make informed decisions about potential borrowers.”
This initiative is a collaboration with the World Bank's Financial Infrastructure Development Project and was made possible with support from IFC’s long-term partner UKaid.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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