Central Bank of Azerbaijan approves roadmap for sustainable financing until 2026

Economy Materials 22 February 2023 11:47 (UTC +04:00)
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, February 22. The Central Bank of Azerbaijan (CBA) has approved a roadmap for sustainable financing for 2023-2026, Trend reports via the CBA.

According to the CBA, the purpose of the roadmap is to ensure the resilience of financial institutions to risks arising from climate change and other factors (environmental, social and governance), as well as to realize the opportunities associated with the transition to a sustainable economy.

"The roadmap has been developed taking into account international best practices and includes measures to integrate climate change and environmental, social and governance criteria into the regulation and control of the financial sector, including the integration of financial institutions (banking, insurance and capital market participants) into strategic decision-making and risk management processes , the formation of appropriate market standards in this area and the formation of an ecosystem of sustainable financial instruments," the bank said.

The CBA also noted that, in general, the implementation of the roadmap will contribute to the formation of a healthy, sustainable and efficient financial sector in Azerbaijan.

Previously, in December last year, at the meeting of the CBA working group on the development of financial markets and the availability of loans, the Commission on Business Environment and International Rankings was presented with information on the draft action plan of the working group for 2023 and the roadmap for 2023 on financial services under the "Improving Business Environment for Prosperity" project of the World Bank Group.

The road map consists of three sub-indicators, 11 components, 47 sub-components, and 42 indicators.

According to the CBA, 18 of these measures include activities related to sustainable financing, 12 - with the activities of credit bureaus and registries, five - with the efficiency of obtaining loans, five - with electronic payments, and two - with the formation of regulatory frameworks for business loans and secured transactions.