IMF says reforms are needed to improve access to credit.

Black Immigrant Daily News

The content originally appeared on: Antigua News Room

The International Monetary Fund says reforms are needed to improve access to credit in Antigua and Barbuda.

The regional credit bureau is expected to accelerate the lending process and enhance credit quality.

Modernization of the insolvency law to facilitate out-of-court settlement and clarify creditor rights can help incentivize lending.

The recently launched regional partial credit guarantee scheme for micro-, small- and medium-sized enterprises can be utilized to alleviate collateral constraints of borrowers.

Meantime, the IMF says the Financial Services Regulatory Commission (FSRC) should continue to exercise vigilance to safeguard financial stability.

 It will be important to intensify the monitoring of credit unions’ asset quality and ensure loan loss provisioning is consistent with fragilities in borrowers’ financial position and broader economic prospects.

The FSRC should also collaborate with the ECCB to formulate a national crisis management plan to contain potential system-wide risk covering both banks and non-banks.

In addition, the supervision, reporting, and regulatory frameworks should be adapted to incorporate climate risks, leveraging regional initiatives led by the ECCB and including through stress tests for non-banks.


0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *