ECONOMY

State to create entity which tracks debtors

state-to-create-entity-which-tracks-debtors

The Finance Ministry is proceeding with the creation of a new entity which will operate like a state version of banks’ Teiresias credit profile database, in an effort to have a single database which will contain information on the debts of households and small and medium-sized enterprises to both banks and the state.

The ministry’s aim, besides having all debts recorded in one place, is for the new entity to make the most of the information it collects so as to assess households’ and businesses’ capacity to repay debts to banks. The government’s plan is for the data on the size and type of debts to allow for an objective form of assessment of the capacity of each taxpayer or company to respond to their obligations, thereby assisting the extrajudicial process for settling debts.

This independent authority will resemble the credit bureaus that operate in many other countries.

The creation of the Credit and Wealth Service, as the new entity will be named, constitutes part of the prior actions required by the country’s creditors up to end-November for the disbursement of the next bailout tranche.