According to the report, Azerbaijan made improvements in areas of registering property, getting credit, protecting minority investors and enforcing contracts. In turn, some restrictions are observed in area of paying taxes.
“Azerbaijan made registering property easier and more transparent by increasing the coverage of its cadaster and digitizing cadastral plans. Azerbaijan also made property transfer more difficult by making it mandatory to deposit funds into the notary deposit account,” WB commented in regards to registering property in Azerbaijan.
Furthermore, in the area of getting credit, Azerbaijan strengthened access to credit by allowing nonpossessory security interests in one category of movable assets without any restrictions on the use of inventory, including future assets extending automatically to products, proceeds, and replacements of the original collateral, WB said.
Azerbaijan also allowed the general description of debts and obligations as well as out-of-court enforcement of security interests, WB noted.
“In regards to protecting minority investors, Azerbaijan strengthened this area by imposing liability on directors for unfair related-party transactions. In turn, Azerbaijan made enforcing contracts easier by introducing an e-system that allows plaintiffs to file the initial complaint electronically and by adopting a consolidated law on voluntary mediation,” the bank noted in the report.
In regards to paying taxes, WB added that Azerbaijan made it more difficult by adding a new labor contribution.