Said Aziz Sadat, General Director of Public Credit Registry Department
Public Credit Registry Department manages two essential projects; Credit Registry and Collateral Registry. Credit Registry is an institution that collects information from creditors and available public sources on a borrower’s credit history. The Registry compiles information on individuals and/or small firms, such as information on credit repayment records, court judgments, and bankruptcies, and then creates a comprehensive credit report that is sold to creditors. A secured transaction is a credit transaction in which the borrower pledges assets as collateral. The collateral pledged can be immovable property such as land and real estate or movable property such as equipment, inventory, machinery, accounts receivables and any other tangible or intangible movable asset where value can be determined.
The Department is governed by the following legal framework:
Law on Secured Transactions on Movable Property in Banking Transactions
- Negotiable Instrument Law
- Regulation on Registration of Securing Charges
- Credit Reporting Regulation
The implementation of these two systems will:
- Increase access to finance
- Enable borrowers to offer their movable assets as collateral and allow lenders to advance loans
- Transfer collaterals from physical to reputational
- Decrease loan processing time and cost with lower interest rate
- Alarm lending sector of bad borrowers
- Establish Priority right
- Notify any charges on movable assets
- Reduce credit risk
The Team was able to successfully implement the Collateral Registry and as a result of their continuous struggles and efforts, Collateral Registry of Afghanistan obtained first position in MENA which is a great success for DAB and all financial sector of Afghanistan.
Bio of Mr. Abdul Nasser Sahak
Public Credit Registry Deputy Director General
Abdul Nasser Sahak has completed his primary school in Mahmood Hotaki and secondary education in Ghulam Haider khan High school in Kabul. After completion of high school, he joined Economics faculty of Kabul University and obtained his bachelor degree in Credit and finance in 1992. Then obtained his MBA in finance from MGU in India and MBA in Public Administration from UMEF in Kabul,
Mr. Sahak started working in 1993 as an employee in Da Afghanistan Bank and served in different sections. He was first appointed as deputy section manager in 5th branch of Da Afghanistan Bank and subsequently appointed as current account section manager in Banking operation, Computer section manager in accounting and finance department, executive Assistant for the Governor of Da Afghanistan Bank, UNV (United National Volunteer) Payment specialist, Accounting specialist and Financial and Control manager in bearing point/USID.
He also served as Deputy Director General Accounting and finance Department, at Da Afghanistan Bank from 2006-2010.
Mr. Sahak is appointed as Deputy Director General of Public Credit Registry of Da Afghanistan Bank since 2010 till now,
Mr. Sahak participated in numerous international trainings offered by World Bank, IMF, Sida, Central Banks, and other international financial institutions (Vermati, Credit Info, and Paradigm) on Central Bank Accounting and finance, SWIFT, IFRS course, Public Credit Registry/Credit Information bureau database and Databases.
Mr. Sahak got the medal for his activities from Administrative office of the president of Afghanistan.
International Finance Corporation (IFC)
“With the creation of the effective legal regime for secured transactions and the launch of the electronic collateral registry, Afghanistan became the first country in the Middle East and North Africa (MENA) region that introduced a modern secured lending framework. This new framework is expected to support Micro, Small and Medium Sized Enterprises (MSMEs) who will be able to gain greater access to finance by using their movable assets as collateral. Effective secured lending regime is also expected to strengthen financial institutions that will be able to ensure a more effective portfolio diversification and benefit from greater market competition”.