BAKU, Azerbaijan, July 29
By Zeyni Jafarov - Trend:
Soft monetary conditions have been formed in Azerbaijan due to fiscal incentives and the lending activity is gradually recovering, Gulnara Khaidarshina, deputy head of the market research department of Russian Gazprombank, told Trend.
According to Khaidarshina, at the same time, throughout the current year, fiscal incentives will increasingly impact the monetary base, which is growing by 24.8 percent.
"In order to maintain macroeconomic stability since the beginning of the year, the Central Bank of Azerbaijan has expanded the set of instruments for sterilizing excess liquidity. So, along with 28-day notes, it was decided to hold auctions on 84-, 168- and 252-day notes," she said.
The expert noted that in the first five months of this year, Azerbaijan's budget was executed with a surplus of 1.2 percent of GDP, and the ceiling of spending hasn’t yet been achieved.
"In this regard, in the near future, the role of the budget in easing monetary conditions will increase," added Khaidarshina.
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