Baku, Azerbaijan, May 23
By Azad Hasanli - Trend:
Legislation in the field of microfinance will be upgraded in Azerbaijan, Executive Director of the Azerbaijan Micro-finance Association (AMFA) Zhala Hajiyeva told Trend.
Presently, AMFA is discussing this issue with Azerbaijan’s Financial Markets Supervisory Authority (FIMSA), she said.
"The law on Non-Bank Credit Institutions (NBCOs) took effect from 2010. Over this period, the country's microfinance organizations have come a long way, and the market itself has changed very much. In this regard, we need to revise the prudential and regulatory framework," Hajiyeva said, adding that the legislation should be upgraded.
Unlike Azerbaijan, according to her, regional countries, for example Georgia or Kyrgyzstan, significantly expanded and upgraded their legislation in this area.
"In this context, a strategy to develop the microfinance sector needs to be drafted. There are certain points in the Strategic Road maps that cover activities of microfinance organizations. For example, the document reads that NBCOs should actively engage in development of non-cash payments in the country. We need our own development strategy, which will cover the relevant issues, "she said.
Hajiyeva said that another direction for cooperation with FIMSA is the development of a credit insurance mechanism in the field of agriculture.
"We are discussing this mechanism with insurance and leasing companies, banks. As this mechanism affects all participants of the financial market. It is important to ensure its effective implementation. In this regard, we use the Turkish model, because Turkey has very good experience in agro-insurance, " she added.
More than 150 non-banking credit organizations operate in Azerbaijan. According to the Central Bank of Azerbaijan, their aggregate loan portfolio amounted to 413.9 million manats as of April 1, 2018.
($1 = 1.7 AZN on May 22).
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