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Lombard is a financial institution that mainly provides loans based on collateral. They offer short-term cash loans to individuals and companies by accepting valuable items as collateral. Typically, gold, jewelry, and securities are pledged to Lombard. When clients repay their loans, they retrieve their items. If the debt is not repaid on time, the items are sold and the proceeds are used to cover the debt. There are several Lombard companies operating in Azerbaijan, and there are specific regulations defined by law for each of them.
