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Bank experts in Azerbaijan accuse evaluators of non-professionalism

16 May 2013 10:48 (UTC +04:00)

Consequently, same property has various prices, while it is valued by separate companies and this creates problem for banks, said the member of Board of Directors of YapiKredi Bank Azerbaijan Shahla Samadova.

She says the evaluation standards are lag behind the international norms: “Azerbaijan-based evaluation companies use the methods such as cost value, liquid value, market value, insurance-restoration value. But these judgments don’t include indicators on investment value and cadastre value which adopted in the international standards”.

Samadova said that majority of evaluation companies use only cost method, but not comparison method.

As a result of this situation, different prices are observed when the property is valued by separate companies: “We face such cases in practice and sometimes, these prices sharply differ from one another. This was caused by minority if professionals among the evaluators“.

Samadova reminded that though 4 evaluation methods have been reflected in the Cabinet’s decision adopted in 2000 in connection with the evaluation standards in the country, these methods aren’t used in the practice: ‘Some companies are generally unaware of the evaluation standards’.

She said that even this can be found also in the activities of such companies as 13 evaluation companies selected for work with the AMF: ‘This shows irresponsible approach of the evaluators to their professionalism. We have faced such cases in our activity and even sent written pretension to the some evaluation companies’.

Samadova noted that similar problems exist at insurance companies, too: ‘Sometimes, during assessing the damage appeared as a result of insurance event, it becomes clear that the specialists are unaware of the method of damage assessment and so on’.

‘The control is weak in evaluation field. There are problems related to professionalism in this field. Only few specialists operating in this sphere have passed the certification process. The certificates are at zero level’, added bank’s official.

She noted that the law on Evaluation activity must reflect the issues connected with responsibility of evaluators. Absence of it causes irresponsibility of evaluation companies.

Samadova proposes to add the issues on acceleration of adoption of new law, compulsory certification of evaluators and compulsory insuring of responsibility into the document.