IFC helps with drafting and adoption of 18 laws in Azerbaijan
Baku, Azerbaijan, Sept. 25
By Eldar Janashvili - Trend:
The International Finance Corporation (IFC) took part in the development of 18 laws and regulations in the field of lending in Azerbaijan, Trend reports from the final conference of the International Finance Corporation (IFC) as part of the Azerbaijan and Central Asia Financial Infrastructure Development Project (ACAFI).
Vice President of Economics and Private Sector Development at IFC Hans Peter Lankes said during the event that since 2009, the Azerbaijani government adopted 18 laws and regulations with the support of the IFC within the framework of the ACAFI project for improving credit and reporting systems, and also created a private credit bureau.
In practice, this primarily means the simplification of access to information, according to him.
“Information is one of the building blocks of an effective financial market and makes it possible for creditors to check the creditworthiness of borrowers, minimize their risks and enable credit to be identified as the main part of financial systems. It also encourages trade between small and medium-sized businesses (SMBs), as it allows them to evaluate the credit histories of their partners," he said.
As such, according to Lankes, the first building block of this project was the creation of a modern legislative framework in the field of credit reporting, as well as the country's first private credit bureau, which is a fundamental component of a well-functioning, SMB-oriented financial system.
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