Credit Reporting System Set to Transform Borrowing in Belize

Starting in 2026, the lending process will look very different, thanks to a brand-new credit reporting system rolling out early next year. The Central Bank of Belize says this system is designed to build a stronger, more inclusive financial future for everyone. It’s been in the works since 2014, and here’s the key: it all depends on your personal credit history. That means information from banks, credit unions, moneylenders, and even your utility and insurance companies will play a role. To get everyone on the same page, the Central Bank invited those stakeholders to its Belize City headquarters today for a press briefing on how this system will work and what it means for you.

 

Kareem Michael, Governor, Central Bank of Belize

“So what do we promise with this introduction of a credit report system? A key barrier to access in Belize has long been the lack of information, information asymmetry, differentiating between the credit worthiness of clients is very difficult when credit reports are lacking. In other words without a way to distinguish between borrowers, lenders hesitate to extend loans. To compensate they raise interest rates, ask for excessive collateral and deny credit all together. There is a bit of discriminatory lending behaviors also in this. Our credit reporting system addresses this imbalance by creating, transparent, standardized, credit histories. It helps lenders make better decisions, reduce the cost of borrowing, and opens the doors for more Belizeans to participate in the formal financial system. The benefits are also significant for MSME’s. These businesses are the backbones of our economy. But they often face challenges in obtaining credit. With the CRS, even small enterprises can build what is known as reputational collateral, a financial track record that substitutes for physical collateral. On a national level, the advantages are clear, lenders gain confidence, loan defaults decrease and the entire financial sector becomes more resilient.”