Azerbaijan has prepared proposals to halve collateral sale term
Baku, Fineko/abc.az. The Central Bank of Azerbaijan is ready to help banks to tackle problems with overdue loans of banks and increase liquidity of collaterals for bank loans.
CBA general director Rashad Orujev has stated that they prepared and submitted to the competent authorities the proposals for improvement of the collateral mechanism, and we hope that soon they will be accepted.
"This is a whole package of amendments to the legislation - the Civil Code, the Mortgage Law and other documents,” Orujev said.
According to Orujev, it is needed to do much to improve the liquidity of the mortgaged property from angle of improving the mechanism of sale of collaterals: how quickly it will be possible to sell collateral and return debts.
"The amendments relate both the mechanism and the necessary procedures to be reduced. We considered that the changes will enable to halve the term of collateral sale - to 7 or 8 months, maximum to one year, with taking into account court proceedings. We cannot limit the borrowers right to defend its position in courts," Orujev said.
He pointed out that target dates, the amendments say about, correspond to the European and international practice of collateral sale.
"It is also the issue of access to financial resources. Defending the rights of consumers of financial services, we should also defend interests of creditors. When lenders are comfortable, they are more willing to start lending and financing,” Orujev said.
Tags: Rashad Orujev
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