The Economic Policy, Industry, and Entrepreneurship Committee of the Milli Majlis (National Assembly) discussed the draft law "On Financial Leasing" during its meeting today.
Operative Information Center-OMM reports that the new legislation establishes the legal framework for financial leasing activities, aiming to promote development and strengthen its role in economic growth. The law defines the legal, organizational, and economic foundations for regulation and supervision in this sector.
The document includes key definitions such as "purchase price," "leaseback," "financial leasing," "lessee," "lessor," "significant share," and "civil integrity." Individuals or entities violating the requirements of the law will be held liable under the current legislation.
The law is set to enter into force six months after its official publication. Following this, entities currently engaged in leasing activities in Azerbaijan must align their operations with the new requirements within nine months and apply to the Central Bank of Azerbaijan for inclusion in the relevant registry. Those failing to comply within the specified period will be prohibited from concluding new contracts or extending existing ones. Furthermore, such entities must remove terms like "financial leasing" or "leasing" from their official company names.
This legislative move is part of Azerbaijan's broader strategy to modernize its financial sector and ensure transparency in non-banking credit operations. By bringing leasing activities under the direct supervision of the Central Bank, the government seeks to mitigate risks, protect the rights of market participants, and create a more competitive environment for small and medium-sized enterprises (SMEs) seeking alternative financing options in Azerbaijan.
