IFC and Arab Monetary Fund Support Development
of Private Credit Bureaus in the Middle East and North Africa
In Cairo:
Riham Mustafa
Phone: + (202)24619140
E-mail: rmustafa@ifc.org
In Washington, D.C.:
Lotte Pang
Phone: +1 202 458 0952
E-mail: lpang@ifc.org
Washington D.C., April 12, 2008—IFC,
a member of the World Bank Group, today signed a memorandum of understanding
with the Arab Monetary Fund to help create a vibrant and effective credit
bureau industry in the Middle East and North Africa. The event took place
during the 2008 World Bank Group and IMF Spring Meetings.
IFC and the Arab Monetary Fund will consolidate efforts to harmonize the
region’s credit reporting systems and implement international best practices.
Over the next three years, the two organizations will assess credit information
infrastructures in the region’s Arab countries to address gaps and challenges
facing most of these countries. They will also work to raise awareness
of credit reporting and its benefits to local economies. These efforts
will help identify strategies and action plans to establish business enabling
and regulatory environments for private credit bureaus.
By developing private credit bureaus, this initiative will help increase
knowledge sharing on credit reporting between countries; increase the efficiency
of financial intermediaries; support the growth of micro, small, and medium
enterprises; mitigate lending risks; and help central banks supervise financial
sectors.
Dr. Jassim Al-Mannai, Director General
and Chairman of the Arab Monetary Fund’s
Board,
said, “Capacity building and sound
policies are crucial in establishing economic and financial reforms. We
are delighted to cooperate with IFC in this initiative. We are convinced
that the assistance to Arab countries will help them comply with Basel
II requirements and enhance the central banks’ supervisory powers.”
Lars Thunell, IFC Executive Vice President and CEO, said, “Credit bureaus
are a crucial building block that enables greater access to finance for
individuals and small businesses. We look forward to working with the Arab
Monetary Fund to establish a credit information infrastructure model that
is easy to market.”
IFC’s regional credit bureau program, launched in 2005, is managed by
IFC Advisory Services in the Middle East and North Africa - PEP-MENA. IFC’s
activities include help in developing a legal and regulatory framework
and advisory services for starting and expanding credit bureaus, with a
focus on strategy, technical partner selection, and outreach and awareness
events.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic
growth in developing countries by financing private sector investment,
mobilizing private capital in local and international financial markets,
and providing advisory and risk mitigation services to businesses and governments.
IFC’s vision is that poor people have the opportunity to escape poverty
and improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through loan participations and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
About the Arab Monetary Fund
The Arab Monetary Fund, a regional Arab organization, was founded in 1976
and started operations in 1977. The fund has 22 member countries and promotes
the development of financial markets in Arab countries, while establishing
policies and methods for Arab monetary cooperation. This is done by providing
short- and medium-term credit facilities to member states to help finance
their overall balance-of-payments deficits. The fund also provides technical
assistance to banking and monetary institutions in member states, conducts
research, and disseminates knowledge on related topics. For more information,
visit www.amf.org.ae.
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