Azerbaijan, Baku, Feb. 27 / Trend N. Ismayilova /
Azerbaijan's banking sector will get additional liquidity in amount of $120 million from the next softening of monetary policy expected to be decided by the NBA Board on Mar. 2, Elman Rustamov, chairman of NBA Board said on Feb. 27.
From March 2, bank-rate will reduce two percent to three percent, upper limit of percent corridor - from 10 to eight percent, obligatory norms of reservation in manat and foreign currency - from three to 0.5 percent. Since October 2008 these indices reduced from 15 to three percent, from 12 to 0.5 percent accordingly, obligatory norms of reservation - from five percent to zero.
Azerbaijani bank sector got additional liquidity in the amount of $650 million as a result of preventive measures, Rustamov said. According to our calculations, Azerbaijani economy will get extra $120 million of liquidity as a result of the last reduction of reservation obligatory norms."
Total volume of additional liquidity funds received by banks exceeds half of foreign borrowings of Azerbaijani bank sector and will greatly support Azerbaijani banks, he said.
"Presently, Azerbaijani bank sector has excess liquidity in the amount of 60-70 percent within the norm of 30 percent," head of NBA said.
Domestic sources of financing must be found to increase amount of loan investments to Azerbaijani economy by banks which continue reducing, Rustamov said.
"Earlier, sources of financing were equally divided between domestic and foreign borrowings, he said. We must find additional sources and grant additional liquidity to banks. But banks should reconsider risks."
Processes occurring on the world market greatly impacted Azerbaijani bank sector. They complicated attraction of new foreign loans despite banks pay off earlier drawn funds in time.
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