Central Bank attaches great importance to ongoing development of State Registry for Encumbrance of Movable Property

07-09-2020

7 September 2020, Baku: Following the instructions of the President of the Republic of Azerbaijan to expand access to financial resources for the population and businesses and increase financial inclusiveness in rural areas, the Central Bank is implementing a number of strategic projects and doing consistent work.

As part of the related measures, to expand opportunities for economic agents to obtain loans secured by movable property, the State Registry for Encumbrance of Movable Property (SREMP), launched in 2018  has been reconstructed on a more advanced technological platform. Updated SREMP (https://mpcr.e-cbar.az) both fully meets modern technological and security requirements, and can be integrated to other public information systems.

To encourage the active use of the established SREMP platform by economic agents, changes have been made to the existing legal and regulatory framework to significantly reduce service fees. Decree of the President of the Republic of Azerbaijan dated 4 September 2020 approved changes made to Decree No 1901 of the President of the Republic of Azerbaijan dated 29 March 2018 on approval of the ‘Regulations on maintaining the state registry of encumbrance of movable property’ and of ‘the amount of the service fee for use of the state registry for encumbrance of movable property’. As a result, the service fee in SREMP AZN10 (ten) for upload of the notice of encumbrance, AZN6 (six) for upload of the notice of change of encumbrance and AZN6 (six) for submission of the approved report on the search results have been decreased to AZN2 (two), 1 (one) and 1 (one) respectively.

Related efforts by the Central Bank will strengthen access of the population and businesses to finance and support wide use of new financial tools. The created platform will eliminate collateral related difficulties during loan application and  expand opportunities to create more convenient lending facilities for the population in the regions. In general, all this will expand financial intermediation in the country and increase financial and banking sector efficiency.