Azerbaijan to facilitate access of business to financial resources
Baku, Azerbaijan, March 16
By Ilkin Shafiyev - Trend:
Creation of a state registry of encumbrance of movable property in Azerbaijan will help the development of small and medium-sized enterprises (SMEs) in the country, Executive Director of Azerbaijan’s Financial Market Supervisory Authority Ibrahim Alishov said at the presentation ceremony of the registry's project in Baku.
The creation of the register will facilitate the access of business to financial resources, he said.
In turn, Chairman of Azerbaijan’s Parliamentary Committee on Economic Policy, Industry and Entrepreneurship Ziyad Samadzade noted that the registry will help create a new format of cooperation between banks and business.
“First of all, we need to raise public awareness of the registry’s activities,” Samadzade said. “The creation of the registry will contribute to the development of Azerbaijani economy.”
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.