Weekly review of main events in Azerbaijan's financial market

Finance Materials 24 October 2022 10:26 (UTC +04:00)
Weekly review of main events in Azerbaijan's financial market
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, October 24. Last week it became known that the Central Bank of Azerbaijan (CBA) and the Turkish Financial Office discuss the prospect of cooperation, Trend reports citing CBA.

Moreover, The Central Bank of Azerbaijan (CBA) and the China Banking and Insurance Regulatory Commission (CBIRC) signed a Memorandum of Cooperation (MoC).

The memorandum is supposed to create a legal basis for cooperation between the two institutions, strengthen relations, as well as enhance the information and expertise exchange in the financial sector.

The document provides for training, seminars, and consulting services between the CBA and the CBIRC.

Last week, Azerbaijan Bank Association and the Azerbaijan Bar Association signed a memorandum of cooperation.

In addition, the European Bank for Reconstruction and Development (EBRD) revealed its loan portfolio in Azerbaijan.

The current projects' portfolio of the European Bank for Reconstruction and Development (EBRD) in Azerbaijan as of October 1, 2022, amounted to 913 million euros.

The majority of the portfolio (90 percent or 822 million euros) fell on sustainable infrastructure projects, 6 percent or 59 million euros – on the industry, commerce, and agribusiness, while 4 percent or 32 million euros accounted for financial institutions, the EBRD said.

Furthermore, Renaissance Capital investment bank expects Azerbaijan's economic growth.

According to the latest economic review from the Renaissance Capital investment bank, Azerbaijan's GDP growth in 2022 is expected at 5 percent.

Fitch Ratings has also revised this week's GDP growth forecast for Azerbaijan.

Azerbaijan’s GDP growth in 2022 is projected at 4.3 percent, falling to an average of 2.3 percent in 2023-2024.

According to Fitch Ratings, Azerbaijan’s current account surplus is expected to increase by 12.1 percentage points to 27.3 percent of the GDP in 2022.

Fitch Ratings also noted that the average inflation rate in Azerbaijan in 2022 is expected at 13.7 percent, falling to 9.7 percent in 2023, and to 6.8 percent in 2024.

The World Bank also forecasted the inflation rate in Azerbaijan to decrease in 2023-2024.

WB forecast inflation in Azerbaijan to stand at 9.5 percent in 2023, with a slowdown to 8 percent in 2024.

AccessBank's eyes creating a new lending line for SMEs and individuals.

The results of the Mobile Banking Rank Azerbaijan 2022 survey were announced by the Russian Markswebb consulting agency.

According to the results, Yelo Bank application is the most convenient mobile bank for individuals in Azerbaijan

Mobile banks with great growth potential are Kapital Bank, International Bank of Azerbaijan, Unibank, Rabitabank, Bank of Baku, Expressbank, TuranBank, Bank Respublika, and AccessBank.

In addition, according to the results of Markswebb, the fastest development in the banks of Azerbaijan is the function of convenient payment, automation and simplification of repeated operations.