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Getting Credit

Below is a detailed summary of two sets of issues—credit information registries and the effectiveness of collateral and bankruptcy laws in facilitating lending.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2014.


 

No

 

Depth of credit information index (0-8)

Private credit bureau

Public credit registry

 

Score

 

1

 

Are data on both firms and individuals distributed?

 

 

Yes

 

Yes

 

    1

 

2

 

Are both positive and negative credit data distributed?

 

 

Yes

 

Yes

 

    1

 

3

 

Are data from retailers or utility companies - in addition to data from banks and financial institutions - distributed?

 

 

No

 

No

 

    0

 

4

 

Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.)

 

 

Yes

 

No

 

    1

 

5

 

Are data on loan amounts below 1% of income per capita distributed?

 

 

Yes

 

Yes

 

    1

 

6

 

By law, do borrowers have the right to access their data in the credit bureau or credit registry?

 

 

No

 

Yes

 

    1

 

7

 

Can banks and financial institutions access borrowers’ credit information online (for example, through an online platform, a system-to-system connection or both)?

 

 

Yes

 

Yes

 

    1

 

8

 

Are bureau or registry credit scores offered as a value-added service to help banks and financial institutions assess the creditworthiness of borrowers?

 

 

Yes

 

No

 

    1

 

 

Score ("yes" to either public bureau or private registry)

 

 

                         7


 

No

 

Strength of legal rights index (0-12)

 

 

 

 

1

 

Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents to security interests in movable assets exist in the economy?

 

 

No

 

2

 

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description of collateral?

 

 

No

 

3

 

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of collateral?

 

 

No

 

4

 

May a security right extend to future or after-acquired assets, and may it extend automatically to the products, proceeds or replacements of the original assets?

 

 

No

 

5

 

Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered?

 

 

No

 

6

 

Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an electronic database indexed by debtor's name?

 

 

No

 

7

 

Does a notice-based collateral registry exist in which all functional equivalents can be registered?

 

 

No

 

8

 

Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third party?

 

 

No

 

9

 

Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure?

 

 

Yes

 

10

 

Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated?

 

 

Yes

 

11

 

enforcement when a debtor enters a court-supervised reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it?

 

 

No

 

12

 

Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell the collateral through public auction and private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?

 

 

No

 

Score (number of "yes" responses)

 

 

  2



Coverage

Private credit bureau

Public credit registry

 

Number of individuals

 

 

18,423,000

 

24,357,037

 

Number of firms

 

 

154,000

 

345,820

 

Percent of total

 

 


33.8

 

45.0



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