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IMF advices Azerbaijan to expand business’s access to finances

Business Materials 19 January 2012 21:19 (UTC +04:00)
The International Monetary Fund (IMF) recommends to Azerbaijan that it expands access of small and medium enterprises to finances
IMF advices Azerbaijan to expand business’s access to finances

Azerbaijan, Baku, Jan.19 / Trend N.Ismayilova /

The International Monetary Fund (IMF) recommends to Azerbaijan that it expands access of small and medium enterprise to finances, chief of the IMF mission Nadeem Ilahi told reporters at the video conference on Thursday.

"The IMF believes the country's government should pay attention to simplifying access of small and medium entrepreneurs to finances, in this regard expansion of microfinancing and establishment of private credit bureaus are important," Mr Ilahi said.

He said non-oil sector of the country continued to develop in 2011. "In spite of consumer prices rise in early 2011 caused by food prices rise in the world, the inflation stabilized in the country by the end of 2011," Mr Ilahi noted.

He also said in case all planned budget expenditure in the country is implemented, overheating of the economy will be possible which will affect rise of inflation rate.

The head of the IMF mission noted development of Azerbaijan's economy should cover all sectors. In order to encourage development of private sector in the country the IMF recommends that Azerbaijan strengthens competitiveness, eliminates trade barriers and expands access to finances for small and medium entrepreneurship.

According to the IMF forecast, GDP growth in Azerbaijan will be 3.7 per cent in 2012, growth of oil sector - 1 per cent and non oil sector - 6 per cent. The Fund estimates inflation to be 7.4 per cent in 2012.

The chief of the mission also touched upon the issue of consolidating small banks in the country and noted the IMF supports voluntary implementation of this process. He also noted importance of effective and accurate approach to privatization issue of the International Bank of Azerbaijan, initial data on privatization process of which the IMF will get by mid-2012.

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