Baku, Azerbaijan, December 15, 2014—IFC,
a member of the World Bank Group, is partnering with the Azerbaijan Bank
Training Centre and Azerbaijan Risk Professionals Association to improve
access to credit for small businesses and help them grow.
IFC Azerbaijan-Central Asia Financial Markets Infrastructure Project, funded
by Switzerland’s State Secretariat for Economic Affairs (SECO), and the
Azerbaijan Bank Training Centre are joining forces to train credit officers
and appraisers of movable collateral, who will then be certified by the
Azerbaijan Risk Professionals Association. Many small businesses lack collateral
in the form of land or buildings to secure a loan but could use movable
collateral, which includes inventory, accounts receivable and equipment,
instead. However, a lack of capacity to evaluate such assets has proved
a challenge in Azerbaijan.
“Access to finance is critical to private sector growth, but the availability
of financial resources in the banking system is often not the only challenge.
IFC and its partners in Azerbaijan are now creating a new framework in
the collateral assessment market to support businesses and spur economic
growth,” said Aliya Azimova, IFC Country Representative in Azerbaijan.
IFC is also working with Azerbaijan’s Central Bank on a draft law governing
secured transactions—loan or credit transactions in which the lender
acquires a security
interest in collateral owned by
the borrower. A special working group including the relevant government
agencies has started preparing for the process by discussing the roles
and responsibilities of all agencies involved in such transactions.
Azerbaijan became a member of IFC in 1995. Since then, IFC has invested
more than $414 million in the country and mobilized $73 million from other
lenders. IFC has also implemented a number of advisory projects focused
on private sector development.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
For more information about SECO, please visit: www.seco-cooperation.admin.ch