Two more banks have expressed desire to join the list of potential shareholders of the first private credit bureau, planned to be established in Azerbaijan, coordinator of IFC project on strengthening the financial infrastructure in Central Asia and Azerbaijan Teymur Eybatov told Trend on Friday.
The memorandum of understanding was signed with nine banks - Access Bank, AGBank, Azerbaycan Senaye Bank?, Bank Respublika, Demir Bank, Muganbank, PASA Bank, Turan Bank and Yap? Kredit Bank Azerbaijan.
"At present, the negotiations are underway with two more banks and in case of reaching an agreement, they will join the memorandum," Eybatov said.
He refused to disclose the names of the banks.
He added that the Executive Committee of the Bureau will hold another meeting to discuss the issue of choosing an international technical partner by late Jan.
"The Corporation has prepared Request for Information (RFI) - request for information from the technical partners about their desire to become partners in establishing a private credit bureau," he added. "If approved by the Executive Committee, RFI will be sent to the companies for them to send their proposals within 1-2 months."
This preparatory work is carried out to create a short list based on a list of potential candidates for participation in the tender for choosing a technical partner after the law on the private credit bureau is adopted. He said that the main requirement for applicants is similar experience in the credit bureau, created in the countries, with the same conditions of economic development and population density as in Azerbaijan.
"We want to know which companies are willing to participate in the first private credit bureau to be established in Azerbaijan," he said. "Then, representatives of the Executive Committee may be sent to the countries to become familiar with the credit bureaus' activity."
This proposal is planned to be sent to all operators of credit bureaus around the world. This process takes an average of 12 to 18 months.
An international partner will supply software for bureaus. Proceeding from experience, the International Finance Corporation also proposes to offer a majority stake in a credit bureau to those who can manage it. This will reduce the risks in the credit bureau's activity, in particular, prevent disputes between banks on certain issues.
Eybatov said that the main task is to prepare to establish the first private credit bureau when the law regulating the activity of credit bureaus enters into force in Azerbaijan. Therefore, the preparation process is conducted in parallel with the procedures of coordinating the bill on "Credit bureaus".
He said that IFC jointly with the Executive Committee prepared comments on the bill and sent them to the Central Bank.
The process of forming credit histories of borrowers has started in Azerbaijan since 2005 after the Central Credit Register Service was established under the Azerbaijani Central Bank. The registry covers the entire range of personal information about banks, non-bank credit institutions, borrowers, owners of large equity in borrowers' capital, loans and deposit on them. A Credit Bureau will be able to collect credit information from other financial institutions such as leasing companies, organizations involved in micro-credit, non-financial organizations, including telecommunications companies, trade facilities selling goods on credit, etc.