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Weekly review of main events of Azerbaijan's financial market

Finance Materials 27 November 2022 14:56 (UTC +04:00)
Weekly review of main events of Azerbaijan's financial market
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, November 27. This week, Governor of Azerbaijan's Central Bank (CBA) Taleh Kazimov said that CBA is developing a new strategy for cybersecurity in the financial sector at the opening of the 6th International Banking Forum, Trend reports.

Meanwhile, Executive Director of CBA Farid Osmanov mentioned that the implementation of the cybersecurity strategy in the financial sector is going to begin in 2023.

The CBA plans to complete the development of a preliminary version of this strategy before the end of 2022. The strategy will be designed for three years.

Moreover, the executive director noted that the CBA continues consultations on the introduction of the digital manat.

According to him, the CBA is cooperating with the International Monetary Fund (IFC) on this issue. He also said that it is necessary to assess how the introduction of digital manat will affect inflation.

He also noted that proposals have been prepared to amend the law ‘On the Central Bank’. These amendments envisage the empowerment of the bank to provide support to fintechs.

Furthermore, the CBA and the World Bank (WB) discussed the implementation of 'green' bonds initiatives.

It was also mentioned this week that the new strategy of the PASHA Bank is going to be developed on the basis of customer focus.

This week, the companies of Azerbaijan and Kazakhstan discussed the development of financial markets.

Moreover, a total of 84 percent of Azerbaijani banks have developed their own mobile apps and banking. It is expected that the number of banks with a mobile app will reach 100 percent. The provision of banking services by local banks is going to focus on the online environment rather than the physical one. Although banks are engaged in the digitalization of their products and services, they continue to open their branches in districts, as well as in Azerbaijan's Nakhchivan. It is also scheduled to establish service centers in the liberated territories.

Furthermore, the European Bank for Reconstruction and Development (EBRD) disclosed its project portfolio in Azerbaijan.

The loan portfolio for EBRD projects in Azerbaijan was estimated at 881 million euros as of November 1, 2022. A total of 90 percent (792 million euros) of the portfolio targets investing in sustainable infrastructure projects, 7 percent (59 million euros) – in industry, trade, and agriculture, while 3 percent (31 million euros) – in financial institutions.

Moreover, the EBRD forecasted growth of the Azerbaijani economy in 2022 at the level of 4.5 percent. The bank also predicted that average annual inflation in Azerbaijan is going to be 12.2 percent.

This week, Azerbaijan shared data on the volume of concessional loans given to women entrepreneurs. A total of 173 women entrepreneurs received concessional loans worth more than 6 million manat ($3.5 million) from January through October 2022.

This week, Azerbaijan's National Depository Center and the Asian Development Bank discussed the capital market development in Azerbaijan.

Moreover, Azerbaijan is going to develop a solution for issuing loans through ATMs.

The international rating agency Fitch Ratings affirmed the long-term foreign and local currency credit rating of the Azerbaijani Mortgage and Credit Guarantee Fund at BB+/Positive.

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