Visa in talks to establish interstate settlement system in manat in Azerbaijan

Business Materials 29 January 2010 13:18 (UTC +04:00)

Azerbaijan, Baku, Jan. 29 / corr Trend I.Khalilova /

The Visa international payment system is discussing establishing the interstate settlements system NNSS with Azerbaijani banks, VISA CIS Regional Manager Alexander Calita told Trend .

Interstate settlements enable banks to carry out interbank settlement in-country in the national currency.

"This system considerably decreases the cost of processing services for banks, and now we are considering the establishment of NNSS with our partner banks in Azerbaijan. The banking community supports the Central Bank in the way of establishing a modern non-cash payment markets in Azerbaijan," Calita said.

The development of a non-cash payment market is a priority activity of Visa.

"In every country we take into account local players on the banking market and rely on the support of state agencies directed at the developing the bank business," Calita said.

The system is applied in over 30 countries, including Russia, Belarus, Kazakhstan, and Georgia. The experience shows that the cost of commission reduces 15-20 times in such cases.

The CBA will act as a settling agent in the project.

Visa jointly with the MasterCard payment system offered to apply privileged tariffs on the CBA. At present, international tariffs are applied on all the operations of the two processing centers in Azerbaijan - MilliKart and AzeriCard.

Clients will gain one percent of their total operations through privileged local tariffs. Visa and MasterCard tariffs will reduce 4-8 times, MilliKart said earlier.