Licensing of two private Credit
Reference Bureaux (CRB) by Bank of Tanzania (BoT) will help to reduce
lending interest rates although more needs to be done to tackle
defaulters.
However, the key issue is to change the
behaviour of most of our borrowers and potential borrowers in meeting
their financial obligations,” Mr Maina said.
He said default rates were
still high and cannot be erased by the CRB introduction only, but other
factors such as being able to identify potential borrowers not only by
their credit history but also their other credentials.
“In this case, the national identity
card is an important document which will make an easier reference point
at the time of credit checks,” the Barclays Bank chief noted. The bank
has nine per cent default rate of clients from all segments of
borrowers.
Last December, BoT licensed two private
CRB operating firms, Credit Info Tanzania Limited and D&B Tanzania
Limited, both based in Dar es Salaam.
Speaking during a World Bank convened
meeting on Stakeholders credit information sharing, Ade Abetole of
D&B and Vedarson Vedar of Credit Info pledged to observe ethics and
avoid a repeat of lip offs experienced in some African countries such as
Uganda where fees were charged in dollars.
“We are not going to charge in dollars
because we are working in Tanzania, we will charge in shillings only,”
said Mr Abetole assuring the public and bankers that prices for the
service will be kept as low as possible.
Abetole said D&B Tanzania
which is a subsidiary of United States based Dun & Bradstreet, will
maintain international standards of the highest degree arguing that CRB
are there to, ‘Fight poverty and spur growth.’
Credit Info’s Mr Vedar also pledged to
play by the rules and assured clients of gradual lowering interest rates
charged on loans. “This initiative by the central bank must be
commended because finally we have credit reference bureau services in
Tanzania which means a lot to the economy,” he noted.
International Finance Corporation (IFC)
and Swiss State Secretariat for Economic Affairs (SECO) are since 2009
sponsoring a credit reporting and sharing information programme known as
Africa Credit Bureau Programme for Tanzania.
Source: The Daily News, www.dailynews.co.tz, reported by Finnigan Wa Simbeye in Dar es Salaam
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