Bill on non-bank credit organizations recommended to be discussed at Azerbaijani parliament
Azerbaijan, Baku, October 5 / Trend , I. Khalilova /
On Oct. 2, the parliamentary committee on economic policy recommended a bill on non-bank credit organizations to be discussed at the Parliament of Azerbaijan in the second reading, taking into account the recommendations and remarks.
"Adopting the bill will facilitate people's access to financial resources, and non-bank credit organizations (NBCO) play an important role in the regulation of funds," said the chairman of the parliamentary committee, Ziyad Samedzade.
Today 18 NBCO function in Azerbaijan. Today investors display a great interest in establishing credit organizations in the country, but before that they expect the adoption of a law that would lay the legal basis for action of NBCO, the executive director of the Association of Microfinance Jale Hajiyeva said at the meeting of the committee.
After the first reading, the bill was finalized, taking into account the comments of Azerbaijani parliamentarians and the experience of other countries. The document mainly underwent editorial changes, and the major change deals with the clarification of the concept of a security deposit.
The bill envisages establishment of two types of NBCO - having the right to receive a security deposit while giving loan and without this law. In the previous version, the security deposit could be made only in cash, but in the last version it is included in cash and in non-cash form.
The bill was prepared with the assistance of World Bank specialists, and the representatives of ACDI/VOCA participated in the working group.
Today 31 microfinance organizations function in Azerbaijan, including 18 non-bank credit organizations established by international organizations, one state non-banking credit organization Agrar-Credit and the rest - the banks involved in microfinance. Today, microfinance organizations have 256,000 active customers, and the total loan portfolio is 150 million manat.
Official rate on Oct. 2 is 0.8035 AZN/USD.
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