Partial liberalization of foreign capital on insurance market in Azerbaijan
Azerbaijan, Baku, Dec.16 / Trend , corr. U.Ismayilova /Azerbaijani Finance Ministry has determined the limit for participation of foreign capital in the total authorized capital of all Azerbaijani insurance companies at the rate of 30%, a source from the ministry said on Dec.16.
Until now, the share of foreign insurers in the capital of every insurance company could not exceed 49% with retaining a control package of assets in the local capital.
This is one of the main obstacles for foreign insurance companies to come to the country, while many large insurance companies desire to enter Azerbaijan's market with major shares.
At present the share of foreign capital in the aggregated capital on the insurance market of Azerbaijan varies to 10%. In Azerbaijan there are 28 insurance companies, in five of which present foreign capital. Earlier, when a quantity of joint insurance companies reached to nine, the share of foreign capital in the aggregated capital on the insurance market of Azerbaijan comprised only 8.5%.
The liberalization of foreign share on the insurance market of the country became possible in accordance with new rules, accepted on the basis of the law on the insurance activity, approved in March 2008.
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