The CBBH Establishes the Central Registry of Credits of Physical Entities

The Governing Board of the Central Bank of Bosnia and Herzegovina (CBBH), at the session held on Wednesday, May 31, 2006 in Brcko, has adopted the decision on the realization of the second stage of the Central Registry of Loans which would include all debts of individuals and their guarantors in commercial banks.

In the first stage, the Central Registry of Credits of Business Entities was established and became operational on April 13, 2006. In order to have the Central Registry complete and include total credits in BH, the Governing Board of the CBBH has made the decision on the realization of the second stage of this project. In this stage, all debts of physical entities and their guarantors in commercial banks will be included.

Funds needed for the realization of the second stage of the project are about EUR 165.000. The United States Agency for International Development is very satisfied with the implementation of the first stage of the project and supported it with 60% of funds. Being aware of the significance of the further project upgrade for the banking system stability, the USAID also offered to co-finance the second stage with 50% of funds.

The Registry of Credits of Physical Entities should be established by the end of this year.

With the aim of further unifying of records on credits in the whole financial sector, the Governing Board of the CBBH has made a decision according to which all legal entities of leasing houses will be included in to the Central Registry of Credits through accounts opened in commercial banks.

Later on, all legal entities of the rest of the financial sector, meaning insurance companies and micro financial organizations that deal with extending credits, might be included in the Central Registry of Loans.