Azerbaijan, Baku, Dec. 5 / Trend J. Nasibova /
The formation of a new legal foundation for the registry of movable property, which must be managed by a private organization, is currently underway in Azerbaijan, USAID's Azerbaijan Competitiveness and Trade (ACT) Project chief lawyer Leyla Mammadova told Trend.
According to Mammadova, creation of a new registry at the Azerbaijani Central Bank is needed because a credit registry is already functioning at the bank, and because it will be an additional apparatus that carries out certain necessary functions.
"The functional registry procedure will be very simple. "According to this procedure, prior to issuing credit, a lender can determine whether a borrower's property has been mortgaged at another bank through the registry", Mammadova said.
According to international practice, under these circumstances, loans generally do not exceed $2000-$2.500 and are issued for a period of three to six months.
According to Mammadova, issues surrounding creating a registry will be addressed in the draft law 'On Secured Transactions'. Changes are also planned for the Civil and Civil Procedure Codes.