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BCEAO and IFC join forces to promote credit bureaus

17.09.2013

The Central Bank of West African States (BCEAO) and the International Finance Corporation (IFC) signed a cooperation agreement on Thursday to promote the creation of credit bureaus in the WAEMU region.

The Central Bank of West African States (BCEAO) and the International Finance Corporation (IFC) signed a cooperation agreement on Thursday to promote the creation of credit bureaus in the WAEMU region.

These bureaus will be selected following a call for tenders by the BCEAO. This initiative is part of several measures being implemented to improve the business climate in the States of the Union, which is among the priorities of their economic policies, BCEAO's general secretary Fatimatou Zahra Diop said at the signing.

She noted that currently, few loans are granted in the WAEMU, as "on 31 December 2012, bank loans accounted for 21.4 percent of GDP in the EU against 36.3 percent in Nigeria, 103.1 percent in Morocco and 182.2 percent in South Africa."

According to Ms Diop, this situation can be explained by the fact that banks are reluctant to lend because of the lack of information on borrowers. They are therefore not able to conduct a proper risk assessment before making a decision.

"The creation of credit bureaus is expected to significantly improve the situation," said Ms Diop.ADNFCR-2976-ID-801637624-ADNFCR