Nat'l bank concerned on rise in value of money
The National Bank of Azerbaijan (NBA) is concerned on the rise in value of money in the country. Elman Rustamov, the chairman of the Managing Board of the NBA, the bank intends to take steps under the anti-inflation decree to prevent the implementation of the state program on development of regions, entrepreneurship, increase of expenses out of the public budget not to result in rise in consumer prices.
According to Rustamov, as a result of 15%-rise in inflation in the first quarter the banks took the temporizing position, while following the steps taken for cubing inflation the bank took some measures including increase of basic rates, interests on T-bills and notes to make them more attractive, consolidate the rate of manat, and the bank began increasing their deposit rates gradually.
The head of the Department for Control over activities of credit organizations of the NBA, Rufat Alsanly, thinks increase of the value of money is a temporary factor and rise in accordance with the banking statistics comprised around 1.5%. The economy needs long money, and respectively the banks can put credits for long-term period. In this respect rise in the deposit rates are obvious, as it is peculiar to long-term credits. For instance, the IBA increased deposit rates considered for 48 months. The similar situation is observed in the commercial banks (Amrahbank, Atabank, etc), which started increasing the deposit rates.