Credit bureau to be up and running within next 12 months

Myanmar will start collecting and providing credit data after a new credit bureau opens in the next 9-12 months, after which banks will be in a better position to offer loans to a larger volume of businesses, said U Zaw Lin Aung, chair of Myanmar Credit Bureau Ltd.

Myanmar Credit Bureau yesterday signed an agreement with US-based Equifax New Zealand Services and Solutions Ltd to establish a credit bureau and to provide a loan data service.

Under the agreement, the US company will install the needed software for the credit bureau. “After 12 months, both lenders and borrowers will be able to enjoy the benefits of the new credit bureau,” U Zaw Lin Aung said.

Under the credit bureau system, banks will be able to make timely, better and right decisions on borrowers and reduce their risks.

Similarly, borrowers with their accounts and paperwork in order will be able to enjoy easier access to funds.

Myanmar Credit Bureau was formed with a 60 percent stake from MB Investment Limited, which was established by the local banks, while the remaining 40pc is held by Singapore’s Asia Credit Bureau Holding Company.

In Myanmar, businesses typically face difficulties gaining access to loans due to the lack of a credit bureau providing data and information on borrowers’ credit history.

“Currently, there is only one from credit bureau in Myanmar. In Korea, there are 5 or 6. It will be like this later in Myanmar. However, we want to focus on making our first one successful before we consider others,” said U Soe Thein, deputy governor of the Central Bank of Myanmar.

SOURCE: MYANMAR TIMES

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