Banks and financial institutions operating in Tanzania have been advised to make use of the credit reference bureau in order to minimise the prevailing high rates of default on loans.

The Managing Director of a debt collection firm, Harvest Tanzania, Joseph Mambia lamented in Dar es Salaam yesterday that many financial institutions are not aware of the existence and importance of credit reference bureau as a supportive pillar to their business.

The credit reference bureau, he said, helps to avail clear information about potential borrowers, and bring business convenience to both creditors and debtors.

In order to reduce the rate of defaulting, financial institutions are, as a matter of principal, obliged to consult credit reference bureaus and request about the history of their prospective borrowers as a necessary condition for lending.

`We have to emulate what our friends in developing countries are doing to minimise the rate of default on loans since they have cultivated the culture of investigating on the history of borrowers,` he said.

In a move to sensitize the public on the importance of credit bureau functions, his company in collaboration with Global Credit Solution (GCS) will be hosting a global credit reference conference in Dar es Salaam next year.

The meeting will attract more than 100 participants from both domestic and global public and private sectors.

GCS offers a wide range of solutions in credit and risk management on the global landscape.

To accept Africa to host the 2008 Conference is huge honour for both Tanzania`s business sector and tourism sector given that it is the first ever that the conference is being held on the African continent.

`There is a great opportunity for Tanzania`s business community to experience first hand and share in the latest global trends and practices employed by GCS itself as a global leader in credit management solutions`, he said.

Among other benefits, the finance, investment and banking sector will interact and share views on a wide range on credit management issues.

The rate of borrowing in countries like Greece, Portugal and South Africa is much higher because people have already developed a culture of taking precautions before processing loans, he said.

The global credit solution is an Australian based company with world wide representation network in 70 countries

(Source : Guardian repris par