International donors to leave their income in Azerbaijan

Business Materials 6 October 2009 14:11 (UTC +04:00)

Azerbaijan, Baku, Oct. 6 / Trend I.Khalilova /

The Azerbaijani Cabinet of Ministers has offered the international donors financing the non-bank credit organizations in the country to keep their profits in the country to continue micro financing if they leave the founders staff, deputy chairman of the Central Bank's board Alim Guliyev said.

"Recently, these micro-finance organizations have more income, so this is the correct solution to make the foreign founders to take only money invested in the establishment of credit institutions" Guliyev said. "These international donors, agreeing with the decision of the government, have already taken such commitments."

According to Guliyev, after the adoption of the bill "On non-bank credit organizations ", which is under the discussions in the second reading at the Azerbaijani parliament, regulatory requirements and activities of the non-bank credit organizations in the country will be determined and provided in accordance with the law.

The Central Bank will set a certain time, during which their activities should be brought into conformity with these standards, Guliyev added.

Azerbaijan has 31 microfinance institutions, including 18 non-bank credit organizations established by the international humanitarian organizations, one the state non-banking credit organization Agrar-credit and the other banks are involved in microfinancing. Currently the microfinance institutions cover 256,000 active clients. 18 non-bank credit organizations have 174,000 clients with an aggregate loan portfolio of 150 million manat and assets of 160 million manat.

The implementation of microfinance programs in Azerbaijan has been launched since 1996. The non-bank credit organizations have been established since 2002, under the international organizations' recommendations.

On Oct. 6, the official exchange rate is 0.8033 manat to $1.

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