Baku, Azerbaijan, Sept.19
By Azad Hasanli - Trend:
International Finance Corporation and the Central Bank of Azerbaijan have finalized the draft law on secured transactions, providing the establishment of moveable property registry in the country, the IFC project coordinator for the financial infrastructure strengthening in Central Asia and Azerbaijan (ACAFI) Teymur Heybatov told Trend Sept.19.
Creation of movable property registry in the country will affect the number of issued loans, in particular to small and medium-sized business entities. Today the entrepreneurs, in whose assets there is a lack of real estate, having difficulty while attracting credit resources.
The registry will allow registering the right to demand movable property when it acts as collateral for the loan.
IFC is working with financial institutions of the country in the direction of improvement of loan products secured by movable property, the representative of the Corporation said.
The Corporation is also working with the Baku training center and Risk Professionals Association (ARPA) for training on assessment of movable property, Heybatov added.
"Training will begin in late October this year. Baku training center will provide training on the basis of the training program developed by us. The successful candidates will be awarded by certificates upon completion of training, that is the prerogative of ARPA," Heybatov noted.
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Besides, IFC is working on a project to improve the financial literacy of clients of financial institutions in the country, he said.
"We will develop a variety of materials, training modules together with financial institutions, with which they will be able to improve the financial literacy of their existing and potential customers," he added.
The draft law was prepared by the ACDI-VOCA international organization assisted by the USAID in 2008. In 2010, the ACAFI project started finalizing the draft. Since 2010, the draft law is being finalized jointly by IFC and USAID, then the Central Bank of Azerbaijan connected to the process.
In 2005, formation of credit histories of debtors started in Azerbaijan after the establishment of the Central Credit Register Service (CCR) under the Central Bank of Azerbaijan. The register covers the whole spectrum of personal data about banks, non-bank credit institutions, debtors, owners of large stock packages of participation in debtors' capital, their credits and pledges on them.
The objective of ACAFI project is the improvement of the infrastructure of Financial Markets in Central Asia (Kyrgyzstan, Tajikistan and Uzbekistan) and Azerbaijan by creating an effective system of credit information exchange and introduction of training and certification in the field of risk management among employees of financial institutions.
The project activities will help financial institutions take quicker and correct credit decisions and thereby increase the availability of financial services to individual consumers as well as small and medium enterprises in the region. This three-year project is being implemented with the cooperation of the Government of Switzerland.
