Azerbaijani banks fail to provide economy’s full need for loans
Azerbaijan, Baku, Nov. 24 / Trend A. Akhundov /
The aggregate indices on the Azerbaijani banking sector as a whole have increased by 20 percent since early 2011, the Central Bank chairman Elman Rustamov said in the Parliament while discussing the draft state budget for 2012 and the next three years.
"The activity in the banking sector was restored," he said. The indices of the banking sector as a whole have increased by 20 percent since early 2011, exceeding the growth rates of the country's macroeconomic indices. The activity in the banking market will be preserved till late 2011. The loans will be given at the level appropriate for the economy."
However, the economy needs the loans more than the issued volume.
"We must think about the additional financial resources and sources of their attraction," he said. "These sources are known. Opportunities are available in the local market. But it is necessary to look for them abroad."
He said that the country's economy is facing the need to implement a serious program on capitalization. The banks must play an important role.
"The loans must be given at low interest rates," he said. "The preservation of a low level of inflation, lower interest on the population's deposits, drawing long-term cheap money may contribute to this."