In Azerbaijan, the law on financial leasing will come into effect in 6 months

President of Azerbaijan Ilham Aliyev approved the law "On Financial Leasing," adopted by the Milli Majlis on May 26.

As reported by BAKU.WS with reference to Report, the new law defines the legal framework for financial leasing activities, regulatory and oversight mechanisms in this area to develop financial leasing and strengthen its role in economic growth.

The document introduces such concepts as "purchase price," "reverse financial lease," "financial lease recipient," "financial leasing activity," and others.

The law will come into effect six months after its official publication. Within the following nine months, companies engaged in leasing are required to bring their activities into compliance with the new requirements and apply to the Central Bank for inclusion in the relevant registry.

Persons who fail to comply with the requirements of the law within the specified period must not enter into new financial lease agreements, must not allow the extension of existing leasing agreements, and in the event that their company name contains the words "financial lease," "financial leasing," "leasing," or word combinations consisting of these words, they must take measures in accordance with regulatory legal acts to remove the said words from their name.