IMF recommends Azerbaijan to neutralize impact of dollar flow on consolidation of manat

Business Materials 7 December 2005 13:38 (UTC +04:00)

The International Monetary Fund and the World have recommended Azerbaijani government to continue reforms in the banking sector of the country, the National Bank of Azerbaijan (NBA) told Trend. The situation in the banking sector was discussed at a meeting at the headquarters of the IMF and WB during stay of the chairman of the Managing Board of NBA in Washington.

The Azerbaijani government will be given definite recommendations on the application of corporate governance standards, consolidation of banks, development of rivalry, expansion of the financial-banking system, development of scheme on agriculture financing. The IMF and WB appraised the new requirements set by the NBA on increase of aggregate capital of the banks, which they consider to promote the intensification of the consolidation of banking capital.

The reforms are expected to increase the efficiency of the financial-banking system and facilitate comprehensive development of economy.

The IMF focused on macro-economic state in the country, inflation processes and rate policy. They underlined that dollar flow in the country, as well as big investments, would lead to the consolidation of manat. In this respect the international organizations recommended the government and the NBA neutralized the impact and first of all ensured the maintenance of the macro-economic stability.

The state in the banking sector of Azerbaijan was also a topic of discussion at the Azerbaijani-US intergovernmental working group on cooperation and assistance to economic reforms, transition to market conditions. Today the NBA actively cooperates with the US Agency for International Cooperation in the direction of reformation of the sector, in particular, delivery of banking services. The discussions also concern the measures held after 11 September for laundry of dirty money. Azerbaijan has joined to bilateral agreement with the United States and set up multilateral cooperation in this respect. A positive estimation was given to the work done in this direction, in particular over the past 6 months. A draft law �On fighting dirty money laundry and terror financing’, has been developed and will be put to the parliament shortly. Under the events the positive estimation was given to achievements in the sphere of banking control.