Azerbaijan, Baku, June 19 / Trend , I.Khalilova/
The Parliament of Azerbaijan adopted the amendments to the Law on the National Bank, which allow to increase the flexibility of the Central Bank of Azerbaijan (CBA) and the use of tools for rapid response on the background of global crisis and to solve problems in order to overcome the post-crisis situations.
Amendments were made due to renaming of the National Bank into Central on the basis of the referendum dated March 18, 2009.
According to chairman of the Parliamentary Committee on Economic Policy Ziyad Samadzade, the most significant changes envisaged to address the banking system with liquidity.
"To ensure the stability of the banking system, protect the interests of bank loans and deposits, the Central Bank will be able to issue bank loans, including subordinated loans," Samadzade said.
So far the Central Bank could issue loans to commercial banks for a period of six months, with possibility of prolongation for another six months that is very short on the background of crisis.
CBA will be able to finance projects of socio-economic significance, including providing financial assistance to the real sector of the economy and to issue loans to banks based on state guarantee. In the case of the need for a bond of trust loan from state guarantee and repayment of these liabilities partially or full at the expense of public debt securities, CBA will be able to buy them in the primary market on the basis of issue of securities.
According to Samedzade, the relevance of the amendments to banking legislation is the fact that the world economy faces crisis, but these changes are part of anti-crisis measures.
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