What is the object of the project?
The object of the project consists in the development of the integrated information system of the ‘Independent Credit Rating Authority’, which will include a central database on the economic behaviour of public sector entities and a single credit rating scale for the generation and assignment of credit scores to natural and legal persons in relation to their debts towards the Hellenic State. The credit score for natural and legal persons will be generated by the information system through automated processing of economic behaviour data obtained from public sector entities by the use of an algorithm. The information system will interoperate with other electronic systems (public and private, such as TIRESIAS SA), with the aim of exchanging credit scores and creating a single scoring system for assessing the creditworthiness of natural and legal persons.
The project consists of the following actions:
- Development of the information system for the assessment of creditworthiness for natural and legal persons
- Interoperability of the information system with public sector bodies and credit rating agencies.
The main components of the information system are the economic behaviour database and the algorithm used for the automated processing of economic behaviour data to be obtained from public sector bodies. The database will be used to store, among other things: general information, information on the debts, economic behaviour and identification of the subject, information on the debts of public bodies, credit scores generated by the system.
What are the expected benefits of the project?
What are the expected benefits of the project?
- Ability for natural and legal persons to access this information, in addition to government agencies, bodies and other financial institutions, while applying the provisions on the protection of personal data.
- Financial stability. Stabilizing and strengthening the financial environment and social cohesion.
- Elimination / significant reduction of asymmetric information between public sector bodies and private entities regarding the creditworthiness of natural and legal persons, by assigning credit scores to them in relation to their debts to the Hellenic State.
- Preventing the increase of non-performing and overdue debts to public bodies and private entities, as well as preventing the over-indebtedness of natural and legal persons.
- Containing moral hazard and creating a reliable deterrence framework for strategic defaulters.
- Responsible lending. Development of a culture for preventing the over-indebtedness of natural and legal persons.
