By Mirsaid Ibrahimzade
A three-day conference entitled “Using financing opportunities
to secure movable property” began in Baku on February 13. The event
is attended by representatives of the Financial Market Supervisory
Authority, IFC, and SECO, along with experts and representatives of
the private sector.
Several issues, topics linked with crediting, financing and
banking were discussed.
Asim Zulfugarov, Deputy Chairman of the Board of the Chamber of
Financial Market Supervision, said at the conference that in 2018,
banks in Azerbaijan issued loans worth 7.6 billion manats, 4.3
billion of which were expended for business lending.
Zulfugarov noted crediting in the country largely went up by 11
percent, and credits to businesses by 7.2 percent.
"Loans in the national currency amounted to approximately 70
percent," added Zulfugarov.
Citing the results of international studies, he noted that the
formation of a national movable property register contributes to
the development of the economy and expanding access to financial
"For example, the experience of seven European countries shows
that the formation of a registry contributed to an average lending
growth rate of 8 percent. We are confident that forming a registry,
accompanied with credit growth, ultimately contributes to economic
development," said Zulfugarov.
Zulfugarov added that large international structures, such as
the State Secretariat for Economic Cooperation of Switzerland
(SECO) and the International Finance Corporation (IFC), assisted in
the study of international experience to create a register of
"Currently, the registry contains information on over 36,000
objects of movable property, including agricultural and consumer
goods, among others," Zulfugarov said.
Further, head of the Baku office of IFC Aliya Azimova revealed
that in 2018, more than 30,000 notifications were received in the
registry of movable property in Azerbaijan.
"The registry of movable property began its work in March last
year and by the end of 2018 it received over 30,000 alerts," she
said during the conference.
She also added that it is necessary to create and expand
products based on a new type of software.
Then, Chairman of the Association of Banks Zakir Nuriyev,
touched upon the banking sector, saying that banks in Azerbaijan
need a mechanism for registering cash requirements as
He also stated that during the adoption law about “ The
encumbrance of movable property” cash was not considered as
collateral and after repeated requests, this clause had been
changed, but now the question remains about the mechanism for
registering cash requirements as collateral.
Additionally, he stressed that another issue is further control
over the fulfillment of cash requirements as collateral and
solution of these issues will greatly facilitate the access of
small and medium businesses to loans.
Thus, on the basis of it, the creation of a state registry of
movable property in Azerbaijan is aimed at the development of small
and medium-sized businesses in the country, facilitating business
access to financial resources.
In particular, the registry allows you to create a database of
movable property that does not have state registration, to ensure
free access of credit organizations to this information, reuse of
encumbered property, restrict the right to use it and thereby
expand the choice of collateral.
The registry also allows legal entities and individuals to
registry their movable property and subsequently use it as
collateral when receiving a loan.
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