BAKU, Azerbaijan, April 17
Trend:
In the current environment, banks should provide more support to the business, said Azerbaijan’s President Ilham Aliyev at the meeting on the socio-economic results of the first quarter of 2020 through videoconference, Trend reports.
“We must protect the macroeconomic situation. At the same time, in the current environment, banks should provide more support to the business. I am very pleased that the percentage of business loans is already increasing, while the percentage of consumer loans is declining. I think that this is a very good trend that needs to be maintained. I also welcome the accession of banks to the self-employment program. You are well aware that there is a great need for this program and we planned to provide funds to 10,000 people through the state. Today, the World Bank has joined it. Both they and our banks will provide funds because the need is much higher. Approximately 40,000-50,000 applications have been filed. Therefore, it is imperative to develop microbusiness, especially in the current conditions – work in this area is also planned in agriculture – so that we could protect businesses, support them, and I agree that we should already prepare for a return to normal life,” said President Ilham Aliyev.
The head of state noted that in general, he positively assesses the work done in the banking sector and in the macroeconomic sphere.
“So keep up the good work. I know that you monitor everything in a daily format. I believe that maintaining interest rate stability is also a very positive step. This is not a very simple question, because the sharp drop in the oil price, the decline in economic activity inevitably caused an increase in interest rates. However, in recent months, interest rates have been consistently falling. Therefore, you are keeping them stable to this day,” said President Ilham Aliyev.
The head of state said he believes that this is the right step in the current conditions.
“Of course, coronavirus created huge problems related to economic activity. But, despite this, I believe that the timely steps we have taken, especially the support of entrepreneurs and businesses, once again demonstrate state policy. Our policy is unequivocal and we have opportunities. We have created them ourselves. If we had not created these financial opportunities, how could we help them today? I do not want to compare Azerbaijan with anyone, but we can see what is happening in other countries now. Such a volume of support per capita as in Azerbaijan is observed in a handful of countries, because we have both opportunities and political will. It is true that the drop in the oil price has negatively affected these opportunities. Therefore, the support for business structures in this situation is only natural. We can’t leave them in a difficult situation because the coronavirus has damaged their business and we must make their work easier,” said President Ilham Aliyev.
The head of state noted that as a result of recent reforms, the business environment in Azerbaijan has significantly improved.
“This is acknowledged by several international organizations. The well-known Heritage Foundation has also published a rating table related to economic freedoms, and Azerbaijan ranks 44th in the world for the index of economic freedoms. In just one year, we climbed 19 steps. I think that this is a good result,” said President Ilham Aliyev.