Credit Information Network Company ‘scinet’ Working On Credit Link In Gulf; To Be Operational Within Months

Some credit policy makers in Kuwaiti companies are expected to be caught on the wrong foot in the coming months if banks refuse to grant them new credit facilities, not because of their failure to pay their existing debts locally, but for their irregularity in repaying loans they obtained in any of the Gulf markets, even if the financing entity is non-Kuwaiti.

In this regard, reliable sources told “Al-Rai” that the credit information network company “SciNet” is working on a credit link in the Gulf, by including a new data box on its network that allows local and Gulf financing agencies to view the credit data of its clients (companies) operating in any of the markets in Gulf Cooperation Council countries, which helps the financing agencies to assess the creditworthiness of customers, within a comprehensive vision, enhanced by more specific data for the company’s credit position.

The sources indicated that listing of commercial credit data and information for Gulf borrowing companies on the SciNet network will not be limited to the inclusion of aggregated loans in the budgets, especially for groups that have subsidiaries operating in Gulf markets, but will also include providing data on the credit history of companies operating in any Gulf market, indicating whether the company is regular in payment or defaulting, and the credit data targeted to be included on the “SciNet” network will show whether the debts registered on the entity are aggregated or belong to subsidiaries.

The sources indicated that the credit link will not be unilateral, meaning that the service of providing data for Kuwaiti borrowing companies will not be provided to local banks only, as it will be available to all financing agencies operating in the Gulf, and the procedure will also include all companies operating in these countries.

From the banking point of view, this means that any local bank has the right to benefit from the credit data that will be included on the “SciNet” network regarding the loans of Kuwaiti companies operating in any Gulf market whose country is credit-linked to the unified network, and any Gulf bank that does not operate in Kuwait has the right to benefit from this information, which is the same thing that is available to Kuwaiti banks if they wish to examine the credit data of a Gulf company that does not operate in the local market.

Regarding the expected date for activating Kuwait’s credit link with the Gulf on the “SciNet” network, the sources reported that the targeted link is expected to be accomplished by Kuwait during the first or second quarter, as the date will be determined by final regulatory approvals in this regard.

She noted that “SciNet” is technically ready to include the credit data of all Gulf companies on its network, and that its officials recently reviewed with the banks the credit data tables of the companies that they must fill out on the site, as part of the company’s preparations to include this data within its operations.

The sources said that the credit link in the Gulf is in line with the determinants of SciNet’s work, which were set forth in the law regulating the exchange of credit information, in line with the global system used in most credit information companies, by presenting the credit status report to customers who obtain credit facilities from credit-granting institutions.

The sources emphasized that this report is not mandatory for the financing agencies, as each bank and finance company will have to take responsibility for its decision in accordance with its risk management approach, meaning that some will accept customers only in the highest rating, while other banks and finance companies may accept without that.

Regarding the possibility of including the joint credit data of individuals in the Gulf, the sources said, “So far, the Gulf’s linking efforts have focused on companies and perhaps individual loans at a later stage.”

 

SOURCE  :   TIMES KUWAIT

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