FIMSA talks launch of movable property registry in Azerbaijan
Baku, Azerbaijan, March 6
By Anvar Mammadov – Trend:
The registry of movable property will be presented to the public during March, Executive Director of Azerbaijan’s Financial Market Supervisory Authority (FIMSA) Ibrahim Alishov said at a conference on “Financing through capital markets, listing and investments” on March 6.
The work on creating the register will be completed soon, he said.
“Entrepreneurs will have a broad access to finance through the launch of this register,” Alishov added.
The Azerbaijani parliament passed a law in 2017 on encumbrance of movable property, which envisages the creation of a registry of movable property.
The law will simplify the use of various equipment and other movable objects as pledge in obtaining a loan.
The registry of movable property, where information on movable objects will be stored, will allow, for example, any credit institution to check the object before it is accepted as a pledge, whether this object is a collateral object for another loan.
Under the law, a special portal will be created, with the help of which anyone can register his/her personal property and subsequently use it as collateral.
The Azerbaijani legislation does not prohibit the use of movable property as a pledge. However, credit institutions prefer not to take such a risk due to the lack of sufficient information, because it is not always possible to determine who actually owns a given property, whether it is already a subject of pledge or not.