Rabat, Morocco, April 15, 2010
—IFC, a member of the World Bank Group, and Morocco’s Central Bank are partnering to help increase access to finance for smaller businesses in Morocco and Central Asia by promoting the creation of private credit bureaus and regulation that will encourage banks to boost private sector lending.
IFC and Morocco’s Central Bank last week organized a study tour for 28 members of central banks, parliaments, lenders associations, banks, and microfinance institutions from Azerbaijan, Kyrgyz Republic, and Tajikistan. Participants learned from Morocco’s experience in establishing its first private credit bureau in 2009 and how to establish and strengthen a credit reporting system.
During the study tour, the group visited Morocco’s Central Bank and its public credit registry; the first private credit bureau in Morocco (Experian); client banks; and Al Amana, one of the largest microfinance institutions in Morocco. Participants also attended a one-day workshop on establishing private credit bureaus.
Joumana Cobein, IFC’s Principal Country Officer for Morocco, said, “Through activities like our credit bureau project, IFC and its partners are working to support smaller businesses by increasing their opportunities to obtain the financing they need to grow and create jobs.”
A lack of credit information hinders banks from widely offering financial services. New and smaller businesses stand to gain the most from improved reporting, as better public information helps them establish creditworthiness.
IFC previously worked with Morocco’s Central Bank to assess its credit registry and suitability for establishing a private credit bureau. Experian, the first private credit bureau in Morocco, began operations in October 2009. This project is part of IFC’s Global Credit Bureau Program, which ultimately expects to enable financial institutions at all levels to make higher quality credit decisions and better manage risk, resulting in stronger financial performance and greater access to finance for micro, small and medium enterprises.
As of June 2009, IFC had committed about $693 million of its own funds in Morocco and arranged about $515 million in syndications. In fiscal year 2008 and 2009, IFC committed almost $256 million in seven projects.
IFC’s strategy in Morocco focuses on investing in infrastructure and in financial intermediaries, who in turn provide access to finance for micro, small, and medium enterprises. IFC also offers advisory services to help financial institutions increase lending to smaller businesses, and is helping Morocco create a business environment that will attract investment.
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 $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
