Five largest banks in Azerbaijan to gain free access to management of free budget funds
Azerbaijan, Baku, July 19 /Trend, I.Khalilova/
The Cabinet of Ministers of Azerbaijan has amended the rules to transfer to management the remains of funds in the single treasury account during the fiscal year.
Under the amendments, the decision on the management of free residual funds (investment portfolio) or the direction of placement of funds transferred to the management is made by the Board of the Finance Ministry. In addition, projected investment portfolio, which is transferred to the management, requirements for liquidity and credit risks, as well as the level of profitability from the management of free residual funds should be viewed.
Free residual funds can also be placed on deposits in the five largest credit institutions that have received a banking license in Azerbaijan and have international credit ratings on the level of capitalization and assets, or debt securities in the banks.
Specialized local and foreign managers can be involved in the management of free residual funds.
The words "in foreign currency" have been removed from the rules, and respectively, the treasury account balances may be in local currency.
The changes to the Cabinet's decision dated April 6, 2007 came into force on July 18, 2011 upon signature.
A total of 44 banks operate in Azerbaijan. For the level of capitalization as of the end of 2010, the top-five banks in the country include the International Bank of Azerbaijan, Pasha Bank, Xalq Bank, Access Bank and Bank Standard, and in terms of assets - the International Bank of Azerbaijan, Kapital Bank, Xalq Bank, Bank Standard and Pasha Bank.