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NAT’L BANK INCREASES REFINANCING RATES

Business Materials 1 October 2005 11:12

The Managing Board of the National Bank of Azerbaijan (NBA) made resolution on increase of accountancy rates by 1% from 1 October 2005. The NBA told Trend that respectively the refinancing rates will comprise 9% instead of previous 8%.

An increase of the refinancing rates will enable to intensify the collection of manat assets for sterilization and promote a cut in inflation pressure, as well as establishment of a balance between demand and supply in the monetary market.

This year the NBA twice increased the refinancing rates. The first increase dated to 23 May 2005 when the refinancing rates were increased by 0.5% from 7% to 7.5%, and the second was on 1 July 2005 by 0.5% to 8%.

As a result of the measures taken by the NBA in accordance with the presidential decree on strengthening the anti-inflation measures in Azerbaijan, dated 31 May 2005 the inflation ratio, which considerably grew in the first quarter, dropped in the second quarter, while in August it was 1.6% down as compared December 2004.

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