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Central Bank of Azerbaijan to support use of new financial instruments

Finance Materials 7 September 2020 19:35
Central Bank of Azerbaijan to support use of new financial instruments

BAKU, Azerbaijan, Sept. 7

By Zeyni Jafarov – Trend:

The State Registry for Encumbrance of Movable Property put into operation in 2018, has been improved in Azerbaijan to expand the opportunities of economic entities to receive loans secured by movable property, Trend reports citing the Central Bank of Azerbaijan (CBA).

“Along with the full compliance of the updated registry with modern technology and security requirements, the possibility of its integration with other state information systems has been created,” the CBA said.

The changes were made to the existing regulatory framework to greatly reduce the service fees to facilitate the active use of the created platform by economic entities.

As a result, the payment for the service of notification about encumbrance was reduced from 10 manats ($5.9) to two manats ($1.2), the service of changing the notification was reduced from six manats ($3.5) to one manat (6 cents) and finally, the service of submitting a confirmed report on paper about the search results was reduced from six manats ($3.5) to one manat (6 cents), respectively.

"The work which is carried out by the CBA in this sphere will contribute to strengthening the access of the population and business entities to the financial resources in the country and the widespread use of new financial instruments," the bank said. “The created platform will expand the opportunities to overcome the difficulties associated with collateral during the loan applications, as well as expand the financial intermediation in the country and increase the efficiency of the financial and banking sector.

(1 USD = 1.7 AZN on Sept. 7)

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