The National Bank of Azerbaijan (NBA) is concluding work over the draft law On micro-financing of organizations and discussions with the interested sides are complete, Trend reports citing Elmar Rustamov, the chairman of the Managing Board of the NBA. The potential for the development of this sphere is high, so is more expedient to design a concept on development of the system.
The legal base in the sphere of micro-financing, as well as in the banking sector should be brought in line with the Basel standards. Over three months the indices increased twice and the same pace can be achieved in micro-financing.
It is necessary to create a simplified regulating mechanism for the activities of the non-bank credit organizations (NBKO). Special program should be adopted to cover the demand of the law-income people, as well as legal and physical entities in credit resources in condition of rise of countrys incomes, Rustamov underlined.
Rustamov asked the donors to assist in the development of program with consideration of the experience of their countries
We are ready to share with the international experience and support program of Azerbaijan. On the base of a long-term cooperation we are ready to allot financial assistance, the US charge daffaires in Azerbaijan, Jason Highland. In 2005 the United States allotted $25m for NBCO in Azerbaijan, which covered 200,000 borrowers.
Basing on the appeals by clients of these micro-financing organizations Azerbaijani Vice Premier Ali Hasanov asked the NBCO to maximally decrease the rates on credits, as mainly the low-income population use these small-scale programs. In 2002-2006 the micro-financing organizations approved 50,000 credits worth $100m, which covered some 2 million people.