Navigate Up
Sign In
Transboundary lending in EAEU common financial market to become more available

Transboundary lending in EAEU common financial market to become more available

6/23/2020

The Board of the Eurasian Economic Commission has approved a revised draft Agreement on the exchange of information being part of credit histories in the EAEU. 

 

On the one hand, the Agreement will contribute to creating equal conditions for residents of all the EAEU countries when applying for loans to banks within the territory of other Member States. On the other hand, the document will enable banks to adequately assess risks when making decisions on lending to other Member States’ residents. This will give an impetus to developing transboundary lending in the Union.

 

The Agreement contemplates the possibility for the EAEU countries’ residents, while staying in another Member State, to request and receive their credit reports when applying for loan products to a financial institution in this country.

 

The document establishes the mechanism, procedure and conditions for exchanging information included in credit histories as well as a minimum list of information subject to transboundary exchange. Along with that, it defines the main principles for protecting the rights and legitimate interests of consumers and financial service providers when documenting credit relations as well as the powers of authorities regulating the Union States' financial market.

 

After being approved by the Commission's Council, the draft Agreement will be sent to the countries for intra-state procedures required for its signing.​