Small and medium-sized enterprises (SMEs) in Azerbaijan will receive additional impetus for development starting from 2018, said Ibrahim Alishov, executive director of Azerbaijan's Financial Market Supervisory Authority (FIMSA) at an event dedicated to the establishment of the regional association of providers of credit bureaus.
He noted that the Azerbaijan Mortgage and Credit Guarantee Fund, the register of movable property and the private credit bureau will facilitate the development of SMEs in Azerbaijan.
"The Azerbaijan Mortgage and Credit Guarantee Fund will support SMEs through interest subsidies and a guarantee mechanism," he said. "The movable property register launched in March this year will expand access to loans for businessmen, because not all entrepreneurs had real estate or documents for it, in order to use it as collateral for obtaining a loan."
He added that more than 500 participants registered in the movable property register and over 10,000 requests were sent in. At the same time, Alishov noted that the register in Azerbaijan has some differences from similar systems in the region. Thus, entrepreneurs in Azerbaijan often use not only consumer goods, but also agricultural equipment, minerals, raw materials, livestock and even fish products as collateral, he added.
"The third institution is a private credit bureau that started operating in March this year," said Alishov. "Its activity is important in terms of expanding credit underwriting, decreasing the cost of loans, reducing customer evaluation time and preventing fraud. More than 200,000 requests have been sent to the bureau since the start of its operation."
The executive director also noted the important role of the International Finance Corporation (IFC) and the Swiss State Secretariat for Economic Affairs (SECO) in creation of the mentioned institutions.