Vusal Gasimli, executive director of the Centre for Analysis of Economic Reforms and Communication (CAERC) participated in the conference “Reforms on encumbrance of movable collateral: survey results and next steps” organized by Azerbaijani Banking Associations (ABA) and International Finance Corporation (IFC).
The event was organized as part of the efforts to improve access to financial resources for small and medium-sized enterprises.
During his speech, Vusal Gasimli stated that improvement in financial affordability, private credit bureaus, non-oil sector development, increase of the utilization of the potential of micro, small and medium-sized enterprises and creation of the encumbered movable collateral registry will have positive impacts on the country economy. “International best practices indicate that most advanced economies and emerging countries have created the encumbered movable collateral registry. Research of the practices of 21 countries where registry of encumbered movable collateral existed showed increase in financial affordability, decrease in loan interest and extension in credit terms. In addition, the result of research showed that creation of new property registries contributed mostly to the performance of newly started businesses. Such registries will serve significant reduction in information asymmetry between creditors and borrowers”
IFC supported the Central Bank of Azerbaijan and the Financial Markets Supervision Chamber in drafting the law on encumbered movable collateral within the World Bank Azerbaijan-Central Asia Financial Infrastructure Improvement Project. The draft Law was reviewed by the government and submitted to the Milli Majlis.
The Event was attended by the representatives of the Economic Policy Committee of the Milli Majlis, Financial Markets Supervision Chamber, Ministry of Economy, Swiss Embassy in Baku and Swiss Cooperation Organization (SECO). The participants conducted the exchange of view on the main principles of the draft law, as well as the further steps for creation of registry of the encumbered movable collateral.
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