New agency will hold everyone’s debt details

A new independent creditworthiness assessment agency will be set up to collect information about outstanding debts to the state and credit institutions.

A draft Finance Ministry bill to set up the agency was recently submitted for public comments.

The agency will have access to the payment schedule data of both individuals and corporations and will issue credit ratings.

It will also be able to exchange information on credit with other agencies, such as Teiresias, the database of delinquent debtors.

The information collected and shared by the agency will help banks make informed decisions about providing credit, having a full picture of a prospective client’s debts.

Officials also said that every individual, or corporation, will be able to use their creditworthiness certification issued by the agency to negotiate loans or debt schedule repayments with both banks and the state.

The Finance Ministry says a fully updated database of debt histories will end the asymmetric information that allowed individuals and companies to borrow larger sums than they could afford or borrow with no intention to repay their debt.

But the ministry also claims that the data will help those in good standing to get financing that credit institutions would otherwise refuse.