BAKU, Azerbaijan, Dec. 13
By Zeyni Jafarov - Trend:
Despite the events related to the pandemic and the Armenia-Azerbaijan Nagorno-Karabakh conflict for the liberation of Azerbaijani lands from the occupation, the Azerbaijani financial sector will end this year with good indices, Chairman of the Central Bank of Azerbaijan Elman Rustamov said.
Rustamov made the remark at a meeting of the Committee on Economic Policy, Industry and Entrepreneurship of the Azerbaijani parliament, Trend reports.
"The Azerbaijani financial market faces great tasks, investment programs in the territories liberated from the Armenian occupation will give an impetus to the economy and further increase the country's economic potential," chairman said.
Moreover, the Central Bank of Azerbaijan and the Azerbaijan Deposit Insurance Fund (ADIF) presented an updated strategy on a new deposit insurance mechanism last week.
This strategy was discussed at a meeting of the Azerbaijani Economic Council and a decision was made on a transition period until April 5, 2021.
The corresponding amendments to the legislation have already been made by the Azerbaijani parliament.
In accordance with these amendments, the amount of compensation on a bank deposit is increased from 30,000 manat ($17,647) to 100,000 manat ($58,823), which makes it possible to fully protect 99.9 percent of deposits in banks.
The amount of compensation on deposits of individuals engaged in individual entrepreneurship is set at around 20,000 manat ($11,764), which will support the development of small businesses and increase their confidence in the banking system.
This week, the Azerbaijani State Statistics Committee disclosed the country's macroeconomic indicators for the past 11 months of 2020.
In accordance with the report, Azerbaijan's GDP decreased by 4.3 percent from January through November 2020 and amounted to 64.7 billion manat ($38.05 billion) compared to the same period of last year.
The consumer price index increased by 2.8 percent compared to the same period of 2019, including the consumer price index on food, beverages and tobacco products - by 5 percent, non-food products - by 1.3 percent, paid services to the population - by 1 percent.
Some 12.7 billion manat ($7.5 billion) was transferred to the development of the Azerbaijani socio-economic sphere from all financial sources from January through November 2020, which is by four percent less than last year.
The outgoing week was also remembered by the rise in prices for Azerbaijani oil.