BUSINESS

Greece to obtain its own credit bureau in 2017

DIMITRA MANIFAVA

TAGS: Economy, Banking

Greece aspires to have a credit rating authority for taxpayers and businesses by the end of the year.

The idea behind this new institution is to collect data from every possible source regarding consistency or unreliability regarding payments, the grading of people and companies based on that criterion, and the utilization of this rating in drafting loan contracts in a more objective manner.

The draft law for the creation of the Independent Authority for Credit Assessment will form part of the negotiations that will begin in the next few days between the Economy Ministry and technical experts from the country’s creditors. Barring any complications, the ministry’s timetable foresees the bill reaching Parliament in mid-October and the authority being formed within 2017. Its formation – along the lines of the Wealth and Credit Agency – has been agreed since 2015 in the context of the third bailout agreement.

Using the data it will collect, hopefully on a  monthly basis too, the authority will issue a score on a scale that may be from 1 to 100 concerning the credit rating of an individual or a company. Borrowers who are not consistent in their payments to one creditor but consistent to others will get higher marks than those who are completely unreliable.

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