Conference Seeks Revival of Credit Expansion in EU, Asia

Representatives from the public, private and academic sectors, as well as international financial institutions discussed the potential of restoring credit expansion in the Caucasus, Central Asia, and eastern European countries in a conference hosted by the International Monetary Fund, European Bank for Reconstruction and Development, and National Bank of Georgia. Participants from Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Moldova, Mongolia, Tajikistan, Turkey, Turkmenistan and Ukraine tackled various options in reviving credit in the short run including new central bank liquidity facilities and risk-sharing through credit guarantees. To help enhance access to financing of small and medium-sized enterprises, the participants emphasized the need for improved risk management capabilities in banks and better use of credit bureaus.