Azerbaijan must continue developing real sector through banking: IBA head
Azerbaijani, Baku, Nov. 24 / Trend , U. Ismayilova /
"The Azerbaijani banking system has demonstrated the ability to counteract negative processes in the global economy," International Bank of Azerbaijan Chairman Jahangir Hajiyev said.
"The Azerbaijani banking system withstood the test of time thanks to effective macroeconomic policies and the apt policies of the Central Bank. The system reduced reserve requirements and took measures to support commercial banks," Hajiyev said.
The banking system of any country is related to the real sector, he added, and it is impossible to stop additional funds flowing into the economy. Hajiyev said nations that began to realize flows to the real economy solely via the banking sector are only now gradually recovering. The first examples are the U.S., Russia and Europe,, he said.
"The International Monetary Fund's president recently warned the government about ceasing these flows," Hajiyev said. Flows were made to the oil sector in Azerbaijan under state guarantee. It is natural to support the real economy via the banking sector in hard global times."
The country's banking sector received liquidity in a direct and indirect form worth $2 billion as part of its anti-crisis measures, Central Bank First Deputy Chairman Alim Guliyev said Nov. 23.
He added that the Azerbaijani banking sector's assets have increased seven percent, its loan portfolio - 11 percent and its capital base - 16 percent since early 2009.
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