Among the difficulties encountered in a maturing post-Soviet economy was the management of credit risk. Beginning with business credit, it was detected early on by the Central Bank of Armenia (CBA) that the commercial banking sector required an integrated credit system to effectively manage the risk of its commercial lending operations.
Through a USAID Economic Restructuring program, Alexius partnered with the CBA to establish a corporate credit registry for commercial entities in Armenia, permiting lenders to track the credit and banking records of commercial clients and associates with whom they have working relationships.
For this program, Alexius collaborated with the National Bank of Romania in order to provide members of the CBA real world experience of an operating platform along with tested policies and procedures in an environment similar to that found in Armenia. The exchange proved fruitful, allowing the project to be approved by the Central Bank Board and proceed to implementation. The deployment of the integrated platform allows commercial banks to review corporate clients' credit scores along with outstanding debt at other commecial entities in order to assess creditworthiness. Further, it allows the Banking Supervision department within the CBA to keep a close eye on the health of the financial sector.
