Kazakhstan ratifies credit history sharing agreement
Kazakhstan’s parliament has ratified the Eurasian Economic Union (EEU) credit history sharing agreement. It is expected that the document will facilitate the exchange of citizens’ credit history within the organization.
The document is going to regulate the order of EEU member states to share customers’ credit history and will determine a pool of information that financial organizations can transfer through national borders. For instance, they will be able to send requests concerning credit reports or request the report itself and associated documents, according to Madina Abylkasymova, head of the Agency for Regulation and Development of the Financial Market (ARDFM) in Kazakhstan.
«The exchange of credit reports is possible only if a borrower – an individual or an entity – doesn’t mind. Moreover, the only goal of such information sharing is to issue loans and monitor credit in the most effective way,» she said while giving a speech in front of members of the parliament.
Kazakhstanis and citizens of other EEU member states can borrow money from any country of the union. However, the process of credit history scoring takes time as financial organizations have no access to credit bureaus in foreign countries.
«Once all amendments are added to the national legislation and all requirements and standards for this sensitive data sharing are approved, the process of loan issuing will go much faster. Regulators from all member states have to work in conjunction with the Eurasian Economic Commission (EEC). I think we need about a year to amend the legislation and deploy the process of sharing with the credit history of regular customers,» Abylkasymova said in the parliament.
By now, there are 1,700 individuals from EEU member states who have taken a loan in Kazakhstan. In the future, the loan-issuing process will be easier for such people.
In 2021, Russian Prime Minister Mikhail Mushustin said that EEU member states will be able to share the credit history of their citizens to facilitate them in applying for a loan in any member state. The EEC considered the draft agreement on credit history sharing in September 2020.
