Afghanistan Central Bank signs agreement on public credit registry system

Officials of Afghanistan Central Bank say that the ACB signed an agreement on public credit registry system with financial development institutions on Monday.

They said that the on public credit registry system is a very important step with a low fee for access to resources.

According to them, the system helps the applicants that want to give loans and the system also prevents corruption.

“Small and medium businesses have access to the funds, they made their customers and can benefit much more,” Eisa Khan Turab, second deputy of Afghanistan Bank said.

The chairman of on public credit registry department says that lending for investors, especially for such small investments in Afghanistan has become a serious problem.

“The current problems for lending have created many challenges for Afghan businessmen. Three million dollars were spent for creation of the system which solves many problems,” Nesar Ahmad Yousufzai, Chairman of public credit registry department said.

Head of microfinance association has also emphasized that small and medium businesses creates and provides jobs to the people.

“One of the main problem for this sector was the lack of coordination between commercial banks and small financial institutions,” Hashmat Seyar Ammar Khail, chairman of microfinance association said.

The full electronic Credit Information Sharing System known as Public Credit Registry (PCR) is fully automated based on international best practices.

PCR will enable potential borrowers to have access to finance and increase credit penetration in the country.

The system is helping financial institutions to have enough online information about the customers and their guarantors to make better-informed decisions.