"A legal failure that prevents... people from negotiating with strangers . . . fastens would-be entrepreneurs to smaller circles of specialization and low productivity."
-- Hernando de Soto, "The Mystery of Capital"
Without a credit bureau, obtaining loans is often possible only through "blat"; unknown persons and businesses are frequently denied financing. And even when a loan seeker has a connection at one source, she is limited to the rate of interest offered, which can be substantially higher than a competitive system provides.
The database of the Credit Information Bureau "Ishenim"™ "introduces" the side of loan applicants that matters most to lenders: their prior records of repayment. The member institution gains instant access to a comprehensive credit history, which expedites decision making and saves the applicant from collecting separate spravki from every possible lender in the Kyrgyz Republic. With nearly 20 licensed banks, over 100 micro-finance organizations, and more than 300 credit unions licensed to give loans, the resulting economization of time is considerable.