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Legal Acts

Legal Act: Law on amendments to the Code on Administrative Offenses

Authority: Milli Majlis (Parliament)

Enactment Date: 02 July 2020

Effective date: 02 July 2020

 

The sanctions of the below articles describing breaches of the quarantine rules were amended as follows:

 

211.1. In violation of the anti-epidemic measures, sanitary-hygienic and quarantine regimes

211.2. In violation of the requirements established by the relevant executive authority in connection with the use of personal protective equipment during the anti-epidemic, sanitary-hygienic and quarantine regimes, as well as for the inability to prevent the violation of these requirements by officials and legal entities

211.3. For repeated committing the offense, provided for in Article 211.2 of this Code, by a person who has received an administrative penalty, within one year from the date of entry into force of the decision on administrative penalty

Natural

persons

200 – 400 AZN administrative arrest

(previously: 100-200 AZN)

 

100 AZN

(previously: 50 AZN)

200 AZN

(previously: 100 AZN)

Public Officials

3000-4000 AZN administrative arrest

(previously: 1500-2000 AZN)

200 AZN

(previously: 100 AZN)

400 AZN

(previously: 200 AZN)

Legal entities

4000-10000 AZN

(previously: 2000-5000 AZN)

 

400 AZN

(previously: 200 AZN)

800 AZN

(previously: 400 AZN)


Read more: https://president.az/articles/39439

 

Legal Act: Procedure for granting state guarantees and subsidizing credit interest on bank loans issued to business entities operating in areas affected by the pandemic

Authority: CabMin

Enactment Date: 09 July 2020

Effective date: 11 July 2020

The procedure for granting state guarantees for bank loans and subsidizing loan interest to business entities operating in areas affected by the pandemic was approved.

Government guarantee is provided on the basis of a Framework Guarantee Agreement between the Ministry of Finance and the Entrepreneurship Development Fund (“Fund”).

To obtain a guarantee and an interest subsidy, an entrepreneur applies to the “electronic credit platform” of the Ministry of Economy.

Loans that are secured with a government guarantee must meet the following requirements:

  • loan amount must not exceed 3 million AZN;
  • the annual interest rate on the loan must not exceed 15%;
  • loan term must not exceed 3 years;
  • grace period for a loan must not exceed 12 months;
  • the ratio of the loan guarantee to the loan must not exceed 60%.

Guarantee is not provided in the following cases:

  • if the purpose of the loan does not correspond to the types of economic activities of the affected industries;
  • if there are delays on behalf of a business entity for more than 60 days by 10 March 2020;
  • if there is an appropriate order to write off funds from the bank accounts of a business entity in cases stipulated by law;
  • when a business entity is a related person to a credit institution to which it applies for a guarantee;
  • when the share of the state in the charter capital of a business entity exceeds 50%;
  • when a criminal prosecution against a business entity in connection with tax evasion is carried out;
  • when a business entity is a risky taxpayer;
  • when the activity of a business entity is suspended and (or) when it is in the process of liquidation at the time of appeal;
  • when inconsistencies occur between the actual activities and performance of the business entity and the accounting data etc.

Note: No guarantee and interest subsidy provided on balance sheet liabilities.

The guarantee comes into force from the date of the transfer of the guarantee deposit (1 percent of the loan amount) to the bank account of the Fund. If the loan agreement between the authorized credit institution and the business entity is not signed within 30 calendar days, the Fund guarantee is considered to be invalid.

The loan guarantee is canceled in the following cases:

  • when applying to an authorized credit institution to cancel the guarantee for an existing loan;
  • when a delay for longer than 1 month in the payment of the warranty commission occurs;
  • when the rights to claim on loans secured by guarantees are transferred by an authorized credit institution to a third party without the written consent of the Fund;
  • if the terms of loan agreements, pledges and other security agreements concluded with the business entity do not correspond to the form established by the Fund, or altered without the written consent of the Fund;
  • when the loan secured by guarantee is being restructured;
  • if the guaranteed loan is not used for the intended purpose in accordance with the loan agreement.

In addition, the form of the Framework Guarantee Agreement on the provision of state guarantees was approved.

 

The procedure for subsidizing loan interest on the existing loan portfolio of business entities operating in areas affected by the pandemic

Subsidizing interest on loans is carried out at the expense of the state budget of the Republic of Azerbaijan and the Fund.

The interest subsidy is paid only in accordance with the interest rate of the loan received (excluding penalties).

Business entities must apply to a credit institution in order to receive an interest subsidy.

Conditions  in which interest subsidies are granted:

  • Interest subsidies are provided for loans (including restructured loans) received in manats by business entities that have suffered losses by 10 March 2020;
  • interest accrued for the first 6 months on loans issued by credit institutions to suppliers of vital food products is subsidized;
  • An interest subsidy is provided in the amount of 10% of the loan interest rate. If the interest rate is below 10%, the interest subsidy is provided in the amount of the loan interest rate;
  • An interest subsidy is provided on loans issued to a business entity, starting from March 2020, but for no longer than 12 months;
  • If the remaining term of the loan commitment is less than 12 months, the interest subsidy is granted until the end of the loan commitment period;
  • Interest subsidy is provided for loans, the residual amount of which by 10 March 2020 constitutes 5 million AZN or less.

The interest subsidy is not provided in the following cases:

  • when concluding a loan agreement after 10 March 2020;
  • if by 10 March 2020 there is a delay of more than 60 days under a loan agreement, under which a business entity applies for a subsidy according to credit reporting;
  • if the share of state participation in the authorized capital of a business entity exceeds 50%.

Note: Except for credit line, the interest subsidy is not provided for the balance sheet liabilities.

The payment of interest subsidies to the borrower is canceled in the following cases:

  • when a credit institution applies to the Fund at the request of a business entity;
  • in the presence of a court decision that has entered into legal force confirming the responsibility of the business entity for crimes in the field of economic activity.

Note: Interest subsidy is not suspended, regardless of the fulfillment of the obligation on the loan received by the business entity.

Read more: https://cabmin.gov.az/az/document/4651/ 

 

Legal Act: Law on amendments to the Code of Administrative Offenses

Authority: Milli Majlis (Parliament)

Enactment Date: 10 July 2020

Effective date: 10 July 2020

 

An article was added establishing liability for breach of legislation on the rights of persons with disabilities.

Article 205-1. Breach of legislation on the rights of persons with disabilities 

  • for admitting any type of discrimination on the grounds of disability in labor relations, as well as for restricting the labor rights of persons with disabilities in relation to other employees in collective and employment contracts;
  • for refusal to conclude an employment contract due to disability, for non-promotion at work, or for termination of an employment contract or for transfer to a different job (profession, position) without their consent;
  • for termination by the employer of an employment contract regardless of its term with persons with disabilities undergoing treatment in rehabilitation institutions;
  • for termination by the employer of an employment contract with an employee who has lost the ability to work as a result of industrial accidents or occupational illness within the same organization;
  • for non-fulfillment by state bodies and state-owned legal entities, the program of individual rehabilitation of persons with disabilities, developed for the purpose of rehabilitation
  • for the employer's refusal to allocate or create new positions for employees who have lost their ability to work as a result of an industrial accident or occupational illness that occurred in the same organization (with the request of the same employee and considering Individual Rehabilitation Program approved in accordance with Article 11 of the Law of the Republic of Azerbaijan “On the Rights of Persons with Disabilities”).

fine in the amount of 300-500 AZN

  • for non-payment by guilty legal entities and individuals of the costs associated with the specially adapted custom homes of persons, whose disability was acquired as a result of an industrial accident

fine in the amount of 500-1000 AZN

Read more: https://president.az/articles/39585 

 

Legal Act: Law on amendments to the Code of Criminal Procedure

Authority: Milli Majlis (Parliament)

Enactment Date: 10 July 2020

Effective date: 15 July 2020

 

The notable amendments made to the Criminal Procedure Code are the followings:

  1. At court hearings (including all procedural actions carried out by means of videoconference), continuous audio recording is carried out, and the court record is drawn up in accordance with this audio recording. In case of a discrepancy between the protocol and the audio recording, preference must be given to the audio recordings.
  1. The information system "Electronic Court" is being introduced into the criminal process. This innovation mainly covers digital document circulation. Soft documents carry the same legal force as paper documents.
  1. In cases set forth by law, the participants in the criminal process can be contacted via videoconference. The decision is carried out by the court.
  1. Interrogation within the preliminary investigation by means of a videoconference is carried out on the basis of the decision of the investigator or the prosecutor who exercises procedural guidance over the preliminary investigation. Individuals may solicit such interrogation by means of a videoconference.
  1. Procedure for execution of sentences or other final decisions on expropriation of property abroad has been determined:
  • Such decisions are sent to the General Prosecutor's Office within 5 days from the date of the entry into force;
  • General Prosecutor's Office must take measures necessary to enforce the decision, as per the local and international laws, including the laws of the country in which the property is requested.
  1. A new chapter called "Execution on the recognition of sentences or other final decisions of foreign courts” has been added:

Decisions are recognized in two given cases:

  • In the presence of an international treaty between the relevant foreign states and the Republic of Azerbaijan;
  • Based on the principle of reciprocity (in the absence of an international treaty).

A foreign state sends an official appeal for the recognition of decisions to the relevant authorities of the Republic of Azerbaijan. Enforcement upon recognition is ensured by the General Prosecutor's Office.

The recognition proceedings are conducted in the court of appeal.

 

 Read more: https://president.az/articles/39563

14 Aug, 2020