IMF supports Central Bank of Azerbaijan's policy to overcome post-crisis period

Business Materials 8 October 2009 16:44 (UTC +04:00)

Azerbaijan, Baku, October 8 / Trend , N.Ismayilova /  

The International Monetary Fund (IMF) supports the flexible policy of the Central Bank of Azerbaijan (CBA) to overcome the post-crisis period, the head of the IMF mission in Baku Koba Gvenetadze said to press conference devoted to the presentation of the World Economic Outlook Report on Oct. 8.

"This year, the Central Bank of Azerbaijan adopted a new currency basket, but when the crisis ends, this policy must become more flexible," said Gvenetadze.

He said the CBA should obtain extensive information to make most effective control on the commercial banks. He said that the Central Bank successfully manage this, and will continue to follow this policy.

"Despite that Azerbaijan was less affected by the crisis than other countries in the region, the State should increase the effectiveness of fiscal measures," he said.

According to him, in mid-2009 the national currencies of all countries in the Middle East and Central Asia devalued in relevant to the USD, except the currencies of Azerbaijan and Turkmenistan.

"Due to the fact that the public debts were attracted by these countries in the USD, the countries which sustained devaluation will experience further difficulties in repaying the debts," said the head of the mission.

According to the IMF, growth prospects are more favorable for the energy-exporting countries. Azerbaijan and Uzbekistan are projected to experience only a moderate slowdown in 2009 and unchanged growth in 2010, since the energy prices stabilize and fiscal expansion supports domestic demand.

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