Funds to be Allocated from Budget to Ensure Liquidity in Azerbaijan’s Bank Sector

Business Materials 12 November 2008 10:43 (UTC +04:00)

Azerbaijan, Baku, November 12 / Trend , corr I. Khalilova/ "About AZN 50mln is expected to be allocated from the public budget of Azerbaijan for the first time to ensure liquidity in Azerbaijan's bank sector. These funds will be invested in the authorized capital stock of banks," Heydar Asadov, chairman of Counting Chamber said at discussions in the parliament over 2009 public budget.

The only state-owned bank in Azerbaijan is the International Bank of Azerbaijan, 50.2% of shares of which is held by the government. Deputy Finance Minister Azer Bayramov stated earlier that the funds to be allocated by the budget are meant for entire bank sector.

"The criteria of selection of banks have not been determined yet. We are working together with the National Bank of Azerbaijan to determine criteria," Bayramov said.

There are 45 banks in Azerbaijan. A total of 23 of them have foreign capital.

"Funds will be allocated from the public budget to control liquidity in economy through investing in capital of joint stock companies. These funds will total to AZN 20mln," chairman of Counting Chamber said.