Baku, Azerbaijan, May 18
By Anvar Mammadov – Trend:
The International Finance Corporation (IFC) will continue to work to improve access to financing for private small and medium-sized businesses, Ian van Bilsen, IFC Regional Manager for the South Caucasus, said in an interview with Trend.
"IFC Azerbaijan-Central Asia Financial Markets Infrastructure Advisory Services Project continues its efforts in improving access to finance for individuals and small and medium enterprises (SMEs) through strengthening Azerbaijan’s financial infrastructure, specifically by helping to develop efficient and sustainable credit reporting and secured transactions systems," van Bilsen said.
The manager noted that, companies, especially smaller ones, often lack assets, like real estate, to obtain the financing they need to grow and create jobs.
"The establishment of a movable collateral registry can allow them to use their movable assets, including inventory, accounts receivable, and equipment, as collateral instead. As a result of reforms conducted with the help of the project, Azerbaijan’s Financial Markets Supervisory Authority recently established a movable collateral registry, which will help boost access to finance, particularly for smaller businesses. The registry will also allow potential creditors to check whether a particular asset is free from encumbrances, or is being used as collateral," van Bilsen said.
He went on to add that in addition, IFC has recently launched an electronic and digital financial services project, which aims to help increase financial penetration and expand financial inclusion by establishing effective, sustainable e-service providers”.
" The project will help provide new tools to customers who cannot reach profitability through traditional branch-based financial services; in particular, by expanding digital financial services to remote areas. Increased access to financial services will help the country’s citizens better manage their finances and thus improve their lives," said the IFC Regional Manager.
Azerbaijan became a member of the International Finance Corporation in 1995. Since the beginning of cooperation, IFC has allocated more than $500 million for projects in Azerbaijan covering the areas of financial services, infrastructure and production.
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