Azerbaijan to launch state-financing program to neutralize negative foreign influence on economy
Azerbaijan, Baku, Jan. 21 / Trend , N.Ismayilova/
The National Bank of Azerbaijan (NBA) will soften its monetary-loan policies, NBA Chairman of the Board Elman Rustamov said.
"Not only monetary-loan and percentage policies will be softened. But Obligatory-reserve norms and refinancing conditions will also be lowered to supply banks with liquidity," Rustamov said.
He said the bank's monetary and loan policies are already accessible, but the extra measures will help to up access to loan resources given the current market conditions.
"The real sector needs funds while returning foreign loans may reduce liquidity," Rustamov said. "We pursue policies to neutralize the negative foreign influence on reviving the country's economy and maintaining employment."
Banks should pay roughly $2.5 billion to clear off foreign loans, he said.
"Therefore, we should cover these funds as a minimum," Rustamov added.
Several billions of dollars will be spent to finance the economy as hundreds of millions are not enough to implement a state-refinancing program, he said. These processes will begin soon.
Banks issued loans amounting to 6.86 billion manat within 11 months in 2008. Some 1.7 billion manat were directed toward the loan-trade and services sectors, 812 million manat - energy, chemical and natural resources, 258.7 million manat - agriculture and processing, 425.8 million manat - construction and real estate, 405.9 million manat - industrial and production sector and 660.6 million manat - transport and communication.
On Jan. 21, the official exchange rate is 0.8045 manat to $1.
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