I live in an OECD country and want to be able to provide some form of
credit guarantee or credit enhancement to someone who lives in a
developing country and wants to take out a loan originated in the
developing country. The person taking out the loan will be responsible
for making the repayments but in the event of default, I will expect
to pay the originating lender the outstanding value of the loan or
have the derogatory information added to my credit. I hence use my
credit to enhance the credit worthiness of the person taking out the
loan - who may have no collateral nor an initial means of establishing
a measure of credit worthiness (quantitatively or qualitatively).
OECD countries of interest include (USA, Canada, UK, France, Germany, Italy)
Developing countries of interest include those in Sub-saharan Africa,
Latin America and the Carribean.
Loans may be business loans (e.g. as typical microcredit loans) or consumer loans.
What legal framework needs to exist between the OECD country and the
developing country to facilitate this?
What framework (technical and otherwise) exists to aggregate or report
my credit worthiness or credit score across international borders?
What are the tax implications to me as the guarantor - with or/and without default?
What are the implications to rating or pricing loans with such
guarantees (with respect to packaging for resale or securitizing) -
particularly as compared to securitizing microfinance loans?
Are there any organisations that do this?
Or case studies of this?
Where can I find detailed information about all of these - to do my
follow on research?
I welcome answers from people with either the legal or credit
origination perspective and will pay for answers that reflect this. I
expect to do my own research so emphasis is
on collating sources of detailed information or reading material
directly relevant to such cross border, consumer level credit
transactions, or where gaps exist then will welcome opinions on what
changes are necessary to facilitate this.
Thank you |