Baku, Azerbaijan, May 1
By Sara Israfilbayova - Trend:
The International Finance Corporation (IFC) plans to complete one of the components of the project to improve the financial infrastructure in Azerbaijan by the end of June this year, a source in the corporation told Trend.
“This project lasts for about nine years,” the source said. “The main goal is to create an effective system for exchanging credit information.”
It is reported that as part of the project, IFC helped to establish a private credit bureau.
Further, the source noted that as part of the second component of the project, a law on secured transactions was created, and the register of movable property is already operating in Azerbaijan.
Since December 2009, the IFC has been implementing a project to strengthen the financial infrastructure in cooperation with the government of Switzerland. The goal of the project is to improve the financial market infrastructure in Central Asia and Azerbaijan by creating an effective system for exchanging credit information and introducing professional training and certification in risk management for employees of financial institutions.
The Azerbaijan Credit Bureau (ACB), which was created as part of the first component of the project, began its operation since February last year.
Unlike the Centralized Credit Registry, the bureau contains more information and covers a bigger number of borrowers. The process of connecting new organizations to the bureau system continues. It is expected that in the future, the ACB will receive information not only from financial institutions, but also providers of utility services, mobile operators, etc.
The second component, the Register of Movable Property, has been operating in Azerbaijan since March last year. It contains information about movable objects, which allows, for example, any credit organization, before accepting an object as a pledge, to check whether this object is already a pledge for another loan.
Azerbaijan became a member of the IFC in 1995. Since the beginning of cooperation, the IFC has allocated over $500 million for projects in Azerbaijan covering various areas.