Credit rating for everyone
New register of debts by companies and individuals to state entities will facilitate lending
The state is setting up a credit rating register for individuals and corporations that will be similar to the “Teiresias” register of bad debtors operated by banks.
The independent Credit Assessment Authority created at the initiative of the Finance Ministry will operate as an instrument for healthy funding to consistent enterprises and individuals.
The bill, which has been seen by Kathimerini, provides for the concentration of all financial data of taxpayers and companies originating from debts to the tax authorities, the social security funds and the local authorities, in order to create a full record of their overall payment culture.
The objective here is to assess the risk of of forfeiting obligations. The new apparatus will create a scoring system for all firms and citizens that will constitute a passport for debt settlement, the participation of corporations in state project tenders, and even for the supply of state collateral in the context of state-funded or European Union co-funded programs.
The rating system could also be used by private entities, such as banks, bad-loan management companies and other enterprises that could issue loans, arrange debts or offer credit for the purchase of a product or a service. However, the use of the independent authority’s rating system by private parties will, according to the bill, require the expressed consent of the individual or corporation examined, in line with data protection laws.
The creation of such an authority gathering all data on state debt payment – whether debts are serviced or not – is seen as a catalyst for the market. It will also gradually be combined with other sources of information, such as “Teiresias” and constitute a key source of data for any transaction requiring credit or for any debt that requires an arrangement.
The credit rating to be created will determine one’s economic relations with the state, with the banks, with all enterprises in the financial sector, and even retailers, cellphone companies, car sellers and various suppliers.
