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Paramaribo, Suriname, June 20, 2013
– IFC, a member of the World Bank Group, is helping the Central Bank of Suriname establish its first credit reporting system, which will allow financial institutions to share credit information and better manage lending risks, thereby increasing access to finance for underserved individual borrowers and small businesses.
With support from the Canadian International Development Agency (CIDA), IFC and the Central Bank of Suriname are hosting a one-day credit reporting conference today in Paramaribo. The conference convenes global experts to share their expertise in credit reporting with representatives from regional central banks, local financial institutions, credit unions, utilities, insurance companies, among other entities in the private sector. This event is the fourth in a series of Caribbean credit reporting conferences organized by IFC and its central bank counterparts to deepen market awareness of credit reporting systems and identify best practices that can be implemented across the region.
“Suriname’s credit reporting system will be critical in promoting a more mature credit culture that supports responsible lending practices and enhances access to credit by retail, micro and small borrowers,” said Ingeborg Geduld-Nijman, Director of the Supervision Department for the Central Bank of Suriname. “For this reason, the Central Bank of Suriname is developing new legislation to govern credit information sharing and strengthen the country’s overall financial infrastructure.”
Credit reporting systems are important in supporting the growth of small and medium enterprises (SMEs), which are the backbone of many economies, often employing more than 60 percent of the workforce. Yet this sector is considered high risk and largely underserved by the financial community in developing countries. This is largely due to a lack of information about SMEs’ credit history. Establishing a credit reporting system helps alleviate this problem by enabling financial institutions to evaluate the risk of SMEs more accurately, resulting in increased availability of credit.
“In developed markets where lenders share credit information, lending risks are lower and a larger percentage of borrowers have access to financing through formal financial institutions,” said Jun Zhang, IFC Senior Manager for the Caribbean. “In developing markets, the introduction and incorporation of an operating credit reporting system can have a significant impact on increasing access to credit to previously un- and underserved, low-income segments of the population.”
IFC’s Caribbean Credit Bureau Program, funded by CIDA, plays a vital role in increasing financial inclusion in the region. IFC has helped the Bank of Guyana pass credit reporting legislation and regulations. The Bahamas, Belize, Haiti, and the Organization of Eastern Caribbean States (OECS) are also developing credit reporting legislation with support from IFC and the World Bank.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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