BAKU, Azerbaijan, July 3. Factoring volume could reach $1.7 billion within 3 years in Azerbaijan, Trend reports.
“As of 2021, the factoring volume in Azerbaijan was €110 million. The market for factoring services in the country is limited, with only a few banks and non-bank financing companies offering these services,” the ADB said.
To achieve this indicator, the ADB advises:
- to create a central security registry to help transferees enforce their rights more effectively;
- to accelerate usage of credit bureau to develop transparency and data availability;
- to increase awareness about the product, with support of development banks and industry organizations.
Meanwhile, Azerbaijan experienced a severe economic recession in 2015–2016. As a result, the Government of Azerbaijan initiated a plan to diversify the economy and improve the business sector, including SMEs. In 2018, SMEs contributed 13.4 percent of value added and 42.9 percent of total employment.