Bonn – Companies and individuals could soon find it easier to obtain credit in another EMU Member State. The basis is an agreement on the exchange of credit histories.

The Eurasian Economic Commission approved on 23 June 2020 an agreement on the exchange of information on credit histories of citizens of the Eurasian Economic Union (EMU). The agreement has yet to be signed by the Presidents of the Member States before it enters into force. The agreement will make it easier for borrowers from Russia, Kazakhstan, Belarus, Kyrgyzstan and Armenia to apply for a loan in another Member State.

The agreement sets out the way in which information will be exchanged and defines basic principles for consumer protection. The aim is to provide banks with all the necessary data to assess the creditworthiness of their customers in order to make the best possible decision on granting a cross-border loan.

The credit history provides information on the raising and repayment of bank loans. It also contains information on mortgages and other liabilities to a creditor. The following data is also requested from banks:

From private individuals: Name, passport details
By entrepreneurs of the EMU: registration number from the State Register of Legal Entities, account number, activity
From foreign entrepreneurs: Name, place, registration number, tax number

The Eurasian Economic Union plans to create a common market for financial services by 2025 and has already defined standards for this.

Source: Germany Trade & Invest