Central Bank of Iraq sign deal with Creditinfo
Creditinfo are pleased to announce that the Central Bank of Iraq, have signed a deal with Creditinfo, having invited international competitive bids to deliver a credit bureau solution. The establishment of a credit information bureau wil assist the lending process of financial institutions operating in the country.
Creditinfo will deliver their Credit Bureau Solution (CBS5) along with a number of Value Added Products (VAPs), such as a collateral registry module, and provide continued support , with a view to adding further VAPs at a later date, as the financial sector further progresses and grows in Iraq. The contract will be delivered over the next 10 months.
Currently, Iraq stands at 180 of 185 economies reviewed in “Doing Business 2014” rankings on the ease of getting credit. Through the introduction of Creditinfo’s Credit Bureau Solution, the economy will increase the scope, coverage and accessibility of credit information, which ultimately will increase people’s access to credit. The rankings for comparator economies and the regional average ranking provide other useful information for assessing how well regulations and institutions in Iraq support lending and borrowing as shown in Figure 1.
As stated in a press realease earlier this year by USAID, the Iraqi economy is evolving from one controlled almost entirely by the government to one that is more free-market and private-sector oriented. Although the oil sector and the government still dominate the Iraqi economy, broad-based economic growth driven by a strong private sector is vital to creating jobs, alleviating poverty and promoting stability. USAID have also been helping the Central Bank of Iraq establish a Credit Bureau in order to facilitate access to credit to borrowers of all income levels and backgrounds.
Additionally, the establishment of a Credit Information Bureau utilising Creditinfo’s Credit Bureau Solution is part of the Iraq Financial Development Project project, to assist industry associations and the Government of Iraq counterparts in improving the soundness of the financial sector.