During a plenary session held today, the Milli Majlis (National Assembly) of Azerbaijan approved a draft law in its first reading aimed at harmonizing several existing legislative acts with the new "Law on Financial Lease." The move is part of a broader initiative to modernize the country's financial regulatory framework and improve the business environment.
Operative Information Center-OMM reports that the amendments affect a wide range of legal documents, including the Civil Code, Tax Code, Competition Code, and laws governing bankruptcy, banking, and state duties. Key changes include the repeal of Chapter 39 of the Civil Code, which previously regulated leasing, to ensure consistency with the new financial lease standards. Furthermore, the reforms mandate that financial lease providers submit credit history data to credit bureaus and establish new registration procedures through the Central Bank of Azerbaijan.
The legislative updates are designed to create a more robust legal foundation for leasing operations in Azerbaijan, facilitating easier access to capital for small and medium-sized enterprises (SMEs). By aligning domestic regulations with international standards, the government aims to stimulate investment in various sectors, including agriculture, industry, and technology. The modernization of the "Law on Financial Lease" is expected to provide clearer protections for both lessors and lessees, thereby reducing legal risks and encouraging the growth of the non-banking financial sector in Azerbaijan.
