Azerbaijan, Baku /corr. Trend I.Khalilova / Economic development in Azerbaijan creates conditions for the improvement of the rating of the participants of the financial market of the country, said the Deputy Chairman of the National Bank of Azerbaijan (NBA), Rufat Aslanly, on June 18 at the 'International Rating Conference'.
According to him, it is the first rating conference in Azerbaijan and attracts great interest.
" Azerbaijan is in the process of all-sided economic, including financial development and it provides an opportunity to improve the rating of the country," Aslanly said.
Currently, five out of 44 banks functioning in Azerbaijan have received a credit rating. According to the ACDI/VOCA Country Director, Mahammad Juniata, there is a lot of capital in Azerbaijan, which is linked to the existence of risks, system problems, high interest rates for attracting deposits and it results in granting expensive deposits.
"Granting preferential credits adversely affects the competitive ability of banks and access of external investments to the local market," Juniata said.
According to him, the online system was applied in Azerbaijan very late and it also delays the development process of the banking sector.
The conference highlighted weak transparency which affects the rating of the country and banking sector.
The conference was organized by ACDI VOCA and financed by the US International Agency for International Development within the project of assistance to the financial sector development through small and medium sized entrepreneurship.