Azerbaijan needs to eliminate disproportion on movable, immovable property in banks' mortgage portfolio
By Trend
The disproportion between movable and immovable property in the mortgage portfolio of banks needs to be eliminated in Azerbaijan, Executive Director of the Center for Analysis of Economic Reforms and Communication Vusal Gasimli said during presentation of the movable property register on March 15.
Presently, according to him, the volume of movable property in Azerbaijan's economic assets is twice the volume of immovable property. In the collateral portfolio, the volume of real estate is three times higher than the volume of movable property.
"It is necessary to get rid of this disproportion. Foreign experience shows that creation of a register of encumbrances on movable property helps to solve this problem. This will allow to ease the access of businesses to financial resources and ensure the inflow of funds into the real sector of the economy," Gasimli said.
The movable property register, where data on movable objects will be stored, will allow, for example, any credit institution to check the object before it is accepted as a pledge, whether this object is a collateral object for another loan. Under the law, a special portal will be created, with the help of which anyone can register his/her personal property and subsequently use it as collateral.
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