Barbadians are not defaulting on their loans to any large degree, according to the financial data processing firm Caribbean Credit Bureau Limited.
Without providing statistics, Chief Executive Officer Grady Clarke said despite the less than favourable economic conditions Barbadians were generally committed to repaying their loans.
“Here in Barbados, despite our economy not necessarily being one of the most robust in the region, our delinquency [and] our credit is fairly well managed here,” Clarke told the media on the sidelines of a seminar on Effective Credit Management and Debt Recovery at the Savannah hotel Thursday morning.
He said the delinquency rate compared favourably with other countries in the region, adding it was partly due to the increasing number of banking institutions with access to credit scores through the bureau.
“Barbadians tend to be very responsible when it comes to credit. I also believe that our credit bureau service has also made a big impact, so that if you don’t pay Peter it is hard to get credit from Paul, and if you pay your bills on a timely basis you get a good credit rating and therefore it becomes easier for you to obtain credit from other credit providers.”
During the seminar, Clarke advised firms to promote “responsible lending”, including full disclosure of terms and conditions to clients and proper record keeping.
“A large part of that involves knowing your customers better,” he said.