Cameroon to set up a credit bureau system
This is a collaborative effort between the BEAC, the IFC and the Cameroonian government.Cameroon will soon benefit from a credit bureau system to facilitate access to credit for small and medium-sized
(SMEs) in the country, said Henri Rabarijohn, the resident representative of the IFC.
The Cameroonian government, the Bank of Central African States (BEAC) and the International Finance Corporation (IFC) are currently working on the implementation of this network.
Credit bureaus will help collect information on the credit history of borrowers and deliver it to banks as credit reports.
According to the IFC, cited by Ecofin agency, the availability of credit information is not only likely to reduce interest rates on loans to economic operators including SMEs - generally unstructured - but also to substantially increase the overall amount of credit disbursed by banks to finance the economy.
Banks are indeed reluctant to lend because of the lack of information on borrowers. They are currently not able to conduct a proper risk assessment before taking a decision.
The first credit bureaus will also be
this year in the eight countries of the Economic and Monetary Union of West Africa (WAEMU).