Azerbaijan President strengthens status of Central Bank
Azerbaijan, Baku, July 10/ Trend , I. Khalilova /
Azerbaijani President Ilham Aliyev signed a decree on application of amendments and supplements to the Law on National Bank, which was approved by the Parliament on June 13, AzerTAj state news agency reported.
According to the decree, the Cabinet of Ministers is in charge of preparing proposals to bring these amendments into conformity with legislative and normative acts.
Changes and additions were made to the Law on National Bank to increase the flexibility of the Central Bank and the tools for rapid response in the context of the ongoing global crisis and to solve problems in order to exit the post-crisis situations.
The amendments allow the Central Bank to issue loans, including subordinated loans, to the banks under the certain conditions. Up to now, the Central Bank could give loans to commercial banks for a period of six months with possibility of prolongation for another six months, that is very short in crisis.
In addition, the Central Bank was authorized to fund projects of socio-economic significance, including providing financial assistance to the real sector of the economy, give banks loans based on state guarantee.
These changes are part of anti-crisis measures, since under the current situation it needs to enhance the status of the Central Bank as an independent structure, said Chairman of the CB Board, Elman Rustamov.
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