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Economic Activity Weakening in Georgia Affect Azerbaijani Banks’ Branches

Business Materials 12 August 2008 16:46 (UTC +04:00)

Azerbaijan, Baku, 12 August / Trend corr. I.Khalilova / Georgia has announced a day off for all Georgian-based banks in order to prevent any agiotage in Georgian credit organizations.

"The order affected Azerbaijani banks as they operate in accordance with the Georgian bank system," Eldar Ismayilov, President of Azerbaijani Bank Association and chairman of the Supervision Council of Caucasian Development Bank, said.

Caucasian Development Bank is the first Azerbaijani bank that entered Georgian bank market in 1999.

However, according to Ismayilov, "our bank employees came to work to hold analytical review". The economic activity and functioning of business-circles have been suspended due to the military state in Georgia, which affect the bank operation system.

Therefore, Georgian National Bank's decision to suspend credit and credit cards issue until 18 August will affect operation volume. Furthermore, Central Bank promised to support commercial organizations whether investors to take their money back.

"Our bank has not faced similar situation so far, but I think the population will unlikely take their money back," Ismayilov said.

At present, the assets of the Caucasian Development Bank's branch exceed $20mln and authorized capital reaches $9mln.

On 12 August, the official currency rate is 0,8136 AZN/USD

The correspondent can be contacted at: [email protected]

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