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IFC helps to improve foreclosure system in Azerbaijan

25 November 2010 14:23 (UTC +04:00)

Baku. Ali Ahmedov â€“ APA-Economics. IFC, a member of the World Bank Group, helps the government to substantially improve the property foreclosure by amending the mortgage law. The work is conducted by IFC jointly with the Central Bank of Azerbaijan (CBA).
Proper and efficient foreclosure legislation is crucial for the development of mortgage market. The foreclosure legislation is efficient if it balances the banksâ€™ and the borrowersâ€™ interests. Improvement of foreclosure systems inevitably translates into better terms for mortgage loans, higher volumes of mortgage lending and ultimately better living condition of people. With the purpose to discuss the challenges in the practices of the leading countries, IFC hosted a one-day seminar in Baku for the major stakeholders to discuss the areas for improvement in legislation and the best international practices. Stephen Butler, IFC Consultant and an expert in foreclosure legislation, delivered a presentation on areas subject to the improvement in Azerbaijani legislation and how these areas are dealt in terms of the best international practices. Following the presentation, the seminar participants shared their views on the proposals and discussed the ways of using the best international experience in Azerbaijan.
â€œThe countries with the best kind of foreclosure legislations ensure that, on one hand, banks can quickly compensate their losses in case of borrowersâ€™ defaults through the foreclosure of the mortgaged property; while on the other hand, the borrowers canâ€™t be arbitrary evicted from their homes,â€ IFC Project Manager, Victor Mints said. â€œSamples of the best international practices presented at the seminar demonstrated in what direction Azerbaijan should move forward to make its foreclosure legislation more efficient and gave practical recommendations about how it could be done.â€
Azerbaijan Primary Mortgage Market Development Project was launched in 2005 with the goal to promote development of a primary mortgage market in Azerbaijan. The core components of the Project are (1) to improve the legal and regulatory environment related to mortgage lending, (2) to build mortgage-lending institutional capacity and (3) to raise mortgage awareness.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org.