The government, as well as financial institutions, will be able to have a single view of all debts of individuals and legal entities through the new Independent Credit Rating Authority, as envisaged by the bill of the Ministry of Finance, which was recently submitted for public comment. .

The Office, which will be a public body, will collect and aggregate information on delinquent obligations and payment behavior in relation to all public sector entities in order to obtain credit ratings for individuals and legal entities.

The Credit Ratings Authority will share information and scores with other rating agencies such as Teiresias. Thus, it is assumed that banks will be able to better determine their financial policy, knowing the total debt of each borrower. At the same time, every citizen or business will be able to use the Certificate of Creditworthiness, which will be issued by the Independent Authority, to conclude their loan agreement or even to settle any debt with the state.

According to the Ministry of Finance, the main task is to eliminate asymmetric information about the creditworthiness of debtors, which, as noted in the analysis of the consequences of the proposed regulation, leads to undesirable results, such as, for example:

• that debtors borrow more money than they can normally repay, or that creditors are willing to lend only a portion of the money that the debtor can repay in succession;
• that, as long as debtors have access to more information than creditors, they may enter into loan agreements without the intention of servicing them;
• that creditors generally do not approve applications for credit from debtors who are in fact of sufficient creditworthiness in the absence of sufficient evidence of their debt to the state, and are likely to approve applications from debtors who are not creditworthy to the state, but more actively seek to provide credit.

Addressing the problem of asymmetric information aims to ensure that reliable credit ratings are available to all types of individuals for use by agencies, financial institutions and other stakeholders in the context of reducing non-performing loans (NPE) and NPLs. government agencies and others, as well as to prevent the phenomenon of over-indebtedness.