Sri Lanka to track utility payment dodgers
Oct 29, 2008 (LBO) - Sri Lanka's credit information bureau has got new powers to track utility bills, insurance and pension fund payments, under an amendment to its law passed in parliament.
Credit Information Bureau (CRIB) officials said the legal amendments and modernisation of its information system will enable it to collect information on any loan taken by companies or individuals.
Till now, the CRIB was limited to collecting information on loans over 500,000 rupees.
The legal changes are meant to improve the island's credit culture and reduce the lapse rate which has been historically high.
The Credit Information Bureau amendment act enables the bureau to collect information on payments to utility services like water, electricity and telephones, apart from loans given by banks and financial institutions.
The CRIB will now also be able to monitor and collect information on those who default on compulsory contributions required to be made to state and private pension funds as well as insurance premiums.
The bureau official said he believes at least 100 new members will become shareholders of CRIB with the amendments to the act in order to make use of its services.
These would include utility services like water and electricity suppliers, telephone service providers, insurance companies, pension funds, and companies selling goods and services on easy payment terms.
The Credit Information Bureau, established in 1990 following the collapse of a number of finance companies, aims to support shareholder lending institutions to obtain credit information faster.
The amendments to the law have also reduced the central bank's shareholding in CRIB to 15 percent to enable other institutions to become shareholders.
CRIB has information on 22,000 individuals and companies who have defaulted on loans over 500,000 rupees amounting to a total of 85 billion rupees.
The total amount of loans outstanding is around 805 billion rupees given to 251,000 companies and individuals.
The CRIB official said that in future anyone can check on his or her credit details and make speedy corrections through a member firm.
He said the total national bad loans rate is around 10-11 percent.
The CRIB wants to bring the rate down but some lending institutions which have lent to powerful people in the country are not ready to submit credit reports, the official said.
Oct 29, 2008 (LBO) - Sri Lanka's credit information bureau has got new powers to track utility bills, insurance and pension fund payments, under an amendment to its law passed in parliament.
Credit Information Bureau (CRIB) officials said the legal amendments and modernisation of its information system will enable it to collect information on any loan taken by companies or individuals.
Till now, the CRIB was limited to collecting information on loans over 500,000 rupees.
The legal changes are meant to improve the island's credit culture and reduce the lapse rate which has been historically high.
The Credit Information Bureau amendment act enables the bureau to collect information on payments to utility services like water, electricity and telephones, apart from loans given by banks and financial institutions.
The CRIB will now also be able to monitor and collect information on those who default on compulsory contributions required to be made to state and private pension funds as well as insurance premiums.
The bureau official said he believes at least 100 new members will become shareholders of CRIB with the amendments to the act in order to make use of its services.
These would include utility services like water and electricity suppliers, telephone service providers, insurance companies, pension funds, and companies selling goods and services on easy payment terms.
The Credit Information Bureau, established in 1990 following the collapse of a number of finance companies, aims to support shareholder lending institutions to obtain credit information faster.
The amendments to the law have also reduced the central bank's shareholding in CRIB to 15 percent to enable other institutions to become shareholders.
CRIB has information on 22,000 individuals and companies who have defaulted on loans over 500,000 rupees amounting to a total of 85 billion rupees.
The total amount of loans outstanding is around 805 billion rupees given to 251,000 companies and individuals.
The CRIB official said that in future anyone can check on his or her credit details and make speedy corrections through a member firm.
He said the total national bad loans rate is around 10-11 percent.
The CRIB wants to bring the rate down but some lending institutions which have lent to powerful people in the country are not ready to submit credit reports, the official said.
