Certain Aspects of Regulation of Factoring in Georgia
Keywords:
Factoring, Financial Service, Factoring Company, Commercial Bank, Microfinance Organization, National Bank of Georgia, Licensing, Supervision, Reporting.Abstract
The article below considers certain specifics of legal institute of factoring and issues connected with regulation of this financial service in Georgia. Effective legislation factually ignores factoring and this set on the agenda necessity of comprehensive processing of this legal field on legislative as well as on scientific level. Discussion provided in the article is based on analysis of legislation and practice of various countries. Taking into account the international experience, the article presents proposals for regulation of factoring in Georgia. Pursuant to author’s view, factoring which is traditionally considered as a regulated field of economics, should preferably fall under supervision of regulatory body but at the same time such supervision should not complicate delivery of factoring services and activities in the area of mentioned legal institute should be attractive, profitable and interesting for an entrepreneur. Along with the achievements of foreign countries in the field of factoring, the article refers to experience gained in inter-agency working group dedicated to factoring law reform and factually presents certain outlines of Georgia’s future factoring legislation.References
Civil Code of Georgia, 26/06/1997.
Commercial Code of Latvia, 04/05/2000.
EU Second Council Directive 89/646/EEC on the Cordination of Laws, Regulations and Administrative Provisions Relating to the Taking Up and Pursuit of the Business of Credit Institutions and Amending Directive 77/780/EEC, 15/12/1989.
Gesetz über das Kreditwesen (Kreditwesengesetz), 09/09/1998, https://www.bundesbank.de/Re¬dak-tion/DE/Downloads/Aufgaben/Bankenaufsicht/Gesetze_VerordnungenRichtlinien/gesetz_ueber_das_kreditwesen_kwg.pdf?__blob=publicationFile.
Law of Georgia on Activities of Commercial Banks, 23/02/1996.
Law of Georgia on Microfinance Organizations, 18/07/2006.
Order of the President of National Bank of Georgia № 151/04 NBG on Approval of Rules of Consumer Protection during Provision of Services by Financial Organizations, 23/12/2016.
Tax Code of Georgia, 12/10/2010.
Unidroit Convention on International Factoring, Ottawa, 28/05/1988.
Akseli O., Turkish Law and UNCITRAL's Work on the Assignment of Receivables with a Special Reference to the Assignment of Future Receivables, Law and Financial Markets Review, Vol. 1, Issue 1, 2007, 47.
Allegiant Business Finance, Factoring Guide, 3, https://www.allegiant1.com/wp-content/up¬loads/2016/09-/Fac¬toringGuide.pdf.
Bakker M. H. R., Klapper L., Udell G. F., Financing Small and Medium-size Enterprises with Factoring: Global Growth in Factoring — and Its Potential in Eastern Europe, Warsaw, 2004, 6, 23.
Dogaru D. -M., Bratiloveanu I., Factoring Contract — Short Term Financing Technique, 2016, 29, http://cis01.central.ucv.ro/revistadestiintepolitice/files/numarul52_2016/3.pdf.
EU Federation for Factoring and Commercial Fianance, Factoring and Commercial Finance: An Introduction, 2017, 3, https://www.intermarket.at/con¬tent/dam/at/intermarket/common/files/-intro%20to%20fac¬toring.pdf.
European Bank for Reconstruction and Development, Factoring Survey in EBRD's Countries of Operation, 2018, iii, iv, https://www.ebrd.com/documents/ogc/factoring-survey.pdf.
Farrenkopf M., Corporate Finance Instrument: Single-Factoring and Sales of Defaulted Accounts (at the example of car dealers and repair service in Germany), Saimaa University of Applied Sciences, South Ko-rea, 2014, 20.
Institute of Chartered Accountants in England and Wales, The Finance Function: A Framework for Analy-sis, 2011, 41, https://charteredaccountantsworldwide.com/wp-content/uploads/2016/09/Developing-ef-fecti¬ve-finance-functions-for-the-unique-contexts-within-which-they-operate.pdf.
Ivanovic S., Baresa S., Bogdan S., Factoring: Alternative Model of Financing, UTMS Journal of Economics, № 2(2), 2011, 193.
Kettering K. C., True Sale of Receivables: A Purposive Analysis, 2009, https://www.researchgate.net/pub-lication/228220314_True_Sale_of_Receivables_A_Purposive_Analysis.
Klapper L., The Role of Factoring for Financing Small and Medium Enterprises, 2007, 5-7, http://siteresources.worldbank.org/INTEXPCOMNET/Resources/Klapper,_The_Role_of_Factoring_for_Financing_Small_and_Medium_Enterprises.pdf.
Klapper L., The Role of “Reverse Factoring” in Supplier Financing of Small and Medium Sized Enterprises, 2004, 9-10, https://www.factoring-mittelstand.de/19_experinces.pdf.
Kouvelis P., Dong L., Turcic D., Supply Chain Finance: Overview and Future Directions, Supply Chain Finance, Kouvelis P., Dong L., Turcic D. (eds.), US, 2017, 3.
Llewellyn D. T., Institutional Structure of Financial Regulation and Supervision: The Basic Issues, Washington DC, 2006, 36-39.
Milenkovic-Kerkovica T., Dencic-Mihajlov K., Factoring in the Changing Environment: Legal and Financial Aspects, Procedia ― Social and Behavioral Sciences, № 44, 2011, 433, 434.
Nishtani Y., Cross-Border Assignments of Receivables, Japan, 2017, 3-4.
Orheian O. M., The Advantages of Using Factoring, as Financing Technique on International Transactions Market, The Annals of “Dimitrie Cantemir” Christian University, Economy, Commerce and Tourism Series, Vol. 9, 2012, 105-106.
RAI University, Factoring ― Theoretical Framework, 2011, 90, http://psnacet.edu.in/courses/¬MBA/Finan-cial%20services/5.pdf.
Regenbogen I., Reverse Factoring — Funding the Un-Fundable, Romanian Review of Private Law, Vol. 2, 2017, 115.
Southeast Europe Enterprise Development, for the Establishment of Factoring Company in Bosnia and Herzegovina, 2007, 8, http://documents.worldbank.org/curated/en/440521468199442423/¬pdf/375110EN-GLISH¬01ing¬1company01PUBLIC1.pdf.
Tatge D. B., Flaxman D., Tatge J. B., American Factoring Law, American Bankruptcy Institute, 2009, 44-46, https://www.bna.com/uploadedfiles/abi_journal_review.pdf.
Tatge D. B., Tatge J. B., Fundamentals of Factoring, Journal Practical Law, September, 2012, 65.
The British Institute of International and Comparative Law, Study on the Question of Effectiveness of an Assignment or Subrogation of a Claim against Parties and the Priority of the Assigned or Subrogated Claim over a Right of another Person, 2011, 338, http://edz.bib.uni-mannheim.de/daten/edz-k/gdj/12/re¬port_-assig¬nment_en.pdf.
UK Factoring Association, International Factors Group, Receivables Finance & ABL, A study of Legal Environments across Europe, 2007, 23, 32, 36, 49, 77, 103, 104, 127, 130, http://www.abfa.org.uk/mem-bers/newsletter/EU-LegislationReport.pdf.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2019 TSU Publishing House
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
