Law Adoption for Private Credit Register in Azerbaijan
Azerbaijan, Baku / Trend corr I. Khalilova / The introduction of a private credit register in Azerbaijan is being developed. The practice will be possible after adoption of the Law on Credit Register development which was commenced by specialists at the National Bank of Azerbaijan (NBA) a month ago, Emin Huseynov, the director of the NBA Statistics & Research Department, said on 9 October.
The law also envisages the potential to extend its coverage area. Today users of the Centralized Credit Register available at the NBA are only banks, though the draft law on non-bank credit organizations enables them to use the credit register.
Huseynov believes international practice shows credit unions may be established for financial organizations, including insurance and leasing companies, as well as trade companies providing retail and wholesale services and communal organizations. "That requires a legislative basis which will regulate their activities," Huseynov said.
The NBA plans to transfer the Centralized Credit Register to commercial banks. That will take place after the implementation of arrangements on the development of the credit register. At the same time the NBA intends to retain the right to manage the non-commercial side which is important for efficient bank control.
According to Huseynov, within 1.5-2 years the Centralized Credit Register may be ready for further efficient institutional development out of the NBA. That is a strategy of the NBA depending on improvements in the credit register system, as well as on the readiness of the banks. Now the system does not work to full speed for banks do not use its services frequently. Moreover, development of the centralized credit register institution has not yet been completed.