APEC agree on credit information sharing, more transparency in lending

Twenty-one member economies of the Asia Pacific Economic Cooperation (APEC) have agreed on measures to further promote inclusive economies in the region, including improved access to credit information and more transparency in lending transactions.

 

The APEC agreed to develop and link credit information bureaus among their member economies.

In a press statement on the culmination of the a four-day assembly of finance officials in Tagaytay City, the APEC said they want “to provide readily available credit information on potential borrowers and allow for easier analysis of risks and faster financing access.”

 

At present, only seven, or one third of all APEC economies, have credit bureaus in place.

 

The APEC said creation and linking of the credit bureaus is seen to especially benefit the micro, small and medium enterprises, including the manufacturing suppliers and service providers, who may not have established credit histories.

 

The APEC said the member countries also agreed on the development and linkage of movable collateral registries in the region to further promote security and transparency in lending transactions.

 

Currently, only 11 members of APEC have their own registry of movable collaterals or assets. The APEC said this is quite ironic as moveable assets account for about 80 percent of the capital stocks for micro, small and medium enterprises, according to World Bank estimates.

 

“Levelling the playing field for small businesses in many ways begins with greater access to financial services essential to get off the ground and develop,” explained Gil Beltran, Philippine Undersecretary of Finance and chair of the meeting which built on inputs from an earlier public-private dialogue on financial inclusion.

 

“We want to position more firms to participate in cross-border trade and supply chains—a centerpiece of the action plan we are now developing for the financial sector to strengthen our economies,” Beltran added.

 

Also discussed during the last day of the assemby in Tagaytay City was fiscal transparency and fiscal policy reforms.

 

“The aim is to heighten scrutiny of tax expenditures and efficient use of government resources for development priorities, including infrastructure needed to reduce the time, cost and uncertainty of moving people, goods, services and capital around the region, and provide added relief to resource-strapped small businesses,” the APEC said in a statement.

 

The APEC said publication of tax expenditure, fiscal risk statements and scaling up public investment are among the measures that will be discussed further in the coming meetings.

 

The APEC said these new measures aim to further promote “inclusive economies”.

 

The APEC finance ministers are set to meet again on September 9 to 11 in Cebu City to further discuss policy cooperation in preparation for the “APEC Small and Medium Enterprises Ministerial Meeting” on September 21 to 25 in Iloilo.  — ELR, GMA News