IFC of­fers Azer­bai­jan to cre­ate sin­gle stan­dards for val­u­a­tion of prop­erty

Azer News - - Business - By Sara Is­rafil­bay­ova

Azer­bai­jan needs to cre­ate sin­gle stan­dards for mort­gaged prop­erty eval­u­a­tion. The stan­dards cur­rently used in Azer­bai­jan are based on old in­ter­na­tional ana­logues, adopted back in 2003, Hamid Mam­mad­janov, a con­sul­tant with In­ter­na­tional Fi­nance Cor­po­ra­tion (IFC), told Trend.

"In­ter­na­tional stan­dards have changed many times, and the lat­est amend­ments were made in 2017," Mam­mad­janov said. "There­fore, we of­fer Azer­bai­jan a project on cre­at­ing new eval­u­a­tion stan­dards."

He added that cre­ation of sin­gle stan­dards un­der­stood by all mar­ket par­tic­i­pants will en­able to avoid dis­agree­ments as well as min­i­mize risks for mar­ket par­tic­i­pants.

Banks sell through ac­tions prop­er­ties con­fis­cated for non-pay­ment. It hap­pens only after the court has de­cided in their fa­vor that the bank may is­sue a con­fis­ca­tion for the auc­tion.

Ear­lier, ex­pert Samir Aliyev noted that auc­tion cen­ters re­ceive a cer­tain per­cent­age of the sale of real es­tate.

“Ide­ally, real es­tate of­fered for auc­tion should be sold at a high price. There is also a clash be­tween the in­ter­ests of the bank and the client. The bank is in­ter­ested in the soon­est sale of real es­tate and get­ting money, while the client wants to sell, for ex­am­ple, an apart­ment more ex­pen­sive, so that after pay­ing the bank, he has money left in his hands. After the sale of the apart­ment, the money al­ready paid by the client to the bank is de­ducted from the pro­ceeds. Also the costs of le­gal pro­ceed­ings, in­ter­est to auc­tion cen­ters are de­ducted from the client’s money,” the ex­pert said.

IFC, a mem­ber of the World Bank Group, is the largest global devel­op­ment in­sti­tu­tion fo­cused ex­clu­sively on the pri­vate sec­tor in de­vel­op­ing coun­tries.

Es­tab­lished in 1944, the WBG is one of the world’s largest sources of fund­ing and knowl­edge for devel­op­ment so­lu­tions.

Azer­bai­jan be­came a mem­ber of IFC in 1995. As of De­cem­ber 31, 2016, IFC has in­vested $473 mil­lion, of which $73 mil­lion was mo­bi­lized from other lenders, fi­nanc­ing 56 long-term projects across a range of sec­tors, in­clud­ing fi­nan­cial ser­vices, in­fra­struc­ture, and man­u­fac­tur­ing sec­tors.

In ad­di­tion, IFC has sup­ported around $80 mil­lion in trade through its trade fi­nance pro­gram and pro­vided $250 mil­lion for Baku-Tbil­isiCey­han pipe­line (BTC). IFC has also im­ple­mented a range of ad­vi­sory projects aimed at en­cour­ag­ing pri­vate sec­tor growth.

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