Reduction of NBA Rates Shows Influence of Global Financial Crisis: Expert
Azerbaijan, Baku, 1 December / Trend , corr. U.Ismaylova /"Reduction of rates of the National Bank of Azerbaijan (NBA) by additional 2% shows that the global financial affected the economy of the country," Ogtai Akhverdiyev, the former head of the Economy and Financial-Credit Policy Department of the Cabinet of Ministers of Azerbaijan, said.
"All measures, taken to prevent the possible influence of the global crisis, are directed to persuade businessmen to take credits further. Reduction of refinancing rate must bring to cut of credit rates," Akhverdiyev said.
According to him, no dramatic influence of the global financial crisis is expected on the economy of Azerbaijan, as the country has enough strategic monetary reserves to prevent dangerous consequences.
The rate was cut by 2% to 8% under the decision of the Board of NBA on 1 December. The upper limit of interest rate was cut from 15% to 13%, and compulsory reservation norms on external currency - from 9% to 6%.
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