Details added (first version posted on 16:14)
Baku, Azerbaijan, Nov. 24
By Azad Hasanli – Trend:
A law on securitization will be adopted in Azerbaijan in 2018, Nurlan Babayev, head of the legal support department of the Financial Market Supervisory Authority (FIMSA), said at the Second Banking Forum in Baku Nov. 24.
Securitization is the financial practice of pooling various types of contractual debt such as residential mortgages, commercial mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cash flows to third party investors as securities, which may be described as bonds, pass-through securities, or collateralized debt obligations (CDOs).
Babayev said this is one of several draft laws planned to be adopted next year for development of financial markets.
Others are draft laws “On regulation and supervision of financial markets”, “On consumer rights’ protection,” and “On payment systems.”