BAKU, Azerbaijan, Oct. 19
By Zeyni Jafarov - Trend:
The banking system of Azerbaijan has recovered after the problems from which it suffered as a result of the devaluation of 2015-2016, and at the moment it almost completely got out of these problems, Azerbaijani Parliament’s Deputy, economic expert, professor Rufat Guliyev told Trend.
According to Guliyev, despite the fact that the lending opportunities of banks have increased, it’s important that the banking sector, which will show the way for the development of the money market, constantly develops, and in this sector, it is necessary to work on the interest rate since banks earn on the difference between loans and deposits.
“However, the Central Bank of Azerbaijan is making great efforts in this direction and for many years has been reducing the discount rate, which leads to increased activation of the banking sector,” the MP said.
As he further said, 15-17 percent on loans is a high indicator, and given the fact that, on average, a successful entrepreneur per year, in addition to deducting taxes and expenses, earns about 10 percent and takes out a loan at 15 or 16 percent, then it becomes difficult to create a business in these conditions.
“Along with the above, the local public entities engaged in entrepreneurship should work much more efficiently and their profit should be higher than at the moment,” Guliyev noted. “Moreover, the state took on all the existing problems of the banking sector, but this doesn’t mean that it will be permanent. Basically, this was due to the toxic debts, resolved by the state, to the banking sector. In connection with reforms that took place in the financial-economic field, it’s important to develop a specific strategy," Guliyev said.
“Finance is the lifeblood of the economy and the level of economic development depends on it. The economy itself exists to improve the well-being of people and in this regard, it is also worth working,” concluded the MP.
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