Azerbaijan, Baku, Dec. 4 / Trend J. Nasibova /
Azerbaijan should establish an effective system to conduct secured transactions, head of the Baku office of the European Bank for Reconstruction and Development (EBRD) Neil McKain said today at a workshop on 'Legal reforms on secured transactions: next steps', today.
"It is necessary to promote changes and reforms on secured transactions and this should be reflected in the bill," he said.
He said that the bill must meet the processes occurring in the market. The Azerbaijani government must be its initiator.
"Professional lawyers, the private sector, including the banks must participate in preparing the bill as the banks must have the information about borrowers," he said.
He added that the executive bodies and regulations should also be created to execute the law.
The adoption of this law will reduce the risks of financial institutions in the area of movable property serving as collateral, increase access to credit and reduce the likelihood of fraud with pawned movable property.
The personal property register, planned to be created upon the project, will include information about all kinds of movable property except for that registered, such as vehicles and various types of machinery.