TIRANA, Jan. 10 (Xinhua) -- Albania is expected to set up a National Credit Bureau this year to reduce bad credit and prevent new non-performing loans, central bank sources said Tuesday.
The bureau, to be established with the assistance of the European Bank for Reconstruction and Development, will help reduce bad credit and prevent new non-performing loans as banks will find it easier to identify citizens and businesses lagging in paying debts, the sources said.
Unlike the current credit registry, the bureau will have more details on the financial background of individuals with debts.
It will contain information not only on individuals' banks debts but also on their unpaid electricity, water or telephone bills, if any.
Citizens with outstanding debts not only in banks but also in other public and private institutions will be officially identified.
The Bank of Albania, the central bank, approved the draft law last year, paving the way for the establishment of the bureau.
The bureau is expected to have a points system. Individuals who have not paid off their debts or bills will lose points.
The points system will enable banks and other financial institutions to have an accurate risk profile of every citizen or business.
