Baku, Azerbaijan, July 31
By Zulfiyya Gurbanova - Trend:
Islamic Development Bank (IDB) has approved a technical assistance program for the government of Azerbaijan in the development of draft amendments and additions to the legal framework of the country in the field of Islamic banking, Director of the Islamic Banking Department of the International Bank of Azerbaijan (IBA) Behnam Gurbanzade told Trend.
"At this stage, the contract for provision of technical assistance is being coordinated with the Cabinet of Ministers and the Islamic Development Bank," he said.
Furthermore, there is a need for changes or amendments to the banking legislation of the country, according to Gurbanzade.
"Without these changes, it will be extremely difficult to work on the external financial market," he added.
The International Bank of Azerbaijan started providing services in Islamic banking last April.Today the total volume of assets without the framework of the Islamic financing exceeds $170.9 million. The IBA`s department of the Islamic baking provides services for corporate clients and individuals. The bank carries out active work in the sphere of improvement of legislation. The working group which includes the IBA specialist and the representatives of a number of miniseries and governmental enterprise, prepares a package of proposals for the regulation of Islamic banking in Azerbaijan.
IBA was founded in January 1992. The IBA is the largest bank in the country. The bank's main shareholder is the Azerbaijani government, which owns a 50.2 percent stake, while 49.8 percent of the shares are owned by private shareholders.
Edited by CN