No need to consolidate NBCOs in Azerbaijan
Baku, Azerbaijan, Oct. 9
By Azad Hasanli - Trend:
The issue of consolidation of non-bank credit organizations (NBCOs) in Azerbaijan is irrelevant, the chairman of the Azerbaijan Micro-Finance Association (AMFA), a board member of Agrarkredit NBCO Suleyman Kalashov told reporters Oct. 9.
"The NBCOs have no need to merge their assets," he said, adding that the obligations of the NBCOs are much lower than those of banks [50 million manats]. "The fact is that the requirement of the Central Bank of Azerbaijan to the authorized capital of non-banking credit institutions isn't very high [300,000 manats]."
Regarding the consolidation among credit unions, the head of AMFA said that their work differs from the work of the NBCOs.
"The problem of credit unions is that they cannot be formed," he said. "They have some problems in the sphere of organization and management. NBCOs have no such problems, so I did not hear about the closing or consolidation of non-banking credit organizations."
There are 43 banks and 157 NBCOs in Azerbaijan. Out of the total number of NBCOs, 103 are credit unions, and the rest are microfinance organization.
The official exchange rate on October 9 is 1.0478 AZN / USD.
Edited by CN