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Azerbaijan National Bank to be renamed into Central Bank

Business Materials 18 December 2008 14:50 (UTC +04:00)

Azerbaijan, Baku, Dec.18 / Trend , corr. I.Alizade, I.Khalilova /Under the document, developed by the standing Parliamentary Commission on Legal Policy and State Building to make changes in the Constitution of Azerbaijan, the National Bank of Azerbaijan (NBA) will be renamed into Central Bank, Ali Huseynov, the chairman of the commission, said. 

All supervision agencies in the banking system are called Central banks in the world practice.

NBA was established by the President's order on the ground of the State Bank, Promstroybank and Agromprombank of the former SSSR dated Fev.11 1992.

In 2007, in accordance with the changes in law on National Bank of Azerbaijan", NBA's functions were enlarged, and it obtained independence in molding of the system of remuneration of the labour of its workers. According to the law, official wage for the management of NBA was determined by the President, and the sum of payment for the remaining colleagues is determined on basis this decision.

Taking into account the world practice Central banks are given the independence and transparency in remuneration for labour. Experts of the International Monetary Fund and World Bank also recognized the delay in the plan of sovereignty of NBA, the main element of which is the absence of independence in the system of remuneration for labour.

In the world practice this approach (independent establishment of payment in CB) is used in many countries including Lithuania, Ukraine and Latvia.

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