Weekly review of Azerbaijan's financial market

Finance Materials 20 February 2023 09:24 (UTC +04:00)
Kamran Gasimov
Kamran Gasimov
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BAKU, Azerbaijan, February 20. Last week Azerbaijan and Türkiye have discussed the project of a new double taxation avoidance agreement regarding income tax and the prevention of tax evasion, Trend reports.

Moreover, it was noted last week that in accordance with the "Digital Payments Strategy of the Central Bank of Azerbaijan for 2021-2023", the Central Bank of Azerbaijan (CBA) is aimed at increasing the share of non-cash payments through cards within the country to 48 percent.

In addition, as part of this strategy, it is planned to increase the share of contactless payment cards in the market to 75 percent.

Furthermore, the CBA, the National Deposit Center (NDC), and the Baku Stock Exchange (BSE) have discussed capital market priorities for 2023.

Also, the Central Bank of Azerbaijan and the European Bank for Reconstruction and Development (EBRD) discussed the establishment of a local credit agency.

Moreover, the EBRD disclosed a portfolio of projects in Azerbaijan last week. The loan portfolio of the EBRD projects in Azerbaijan was estimated at 843 million euros as of December 31, 2022. The major part of the investment portfolio (86 percent or 726 million euros) focuses on sustainable infrastructure, 10 percent (85 million euros) – on industry, trade and agriculture, and four percent (31 million euros) – on financial institutions.

In addition, the bank also forecasted the growth of Azerbaijan's real GDP at 2.5 percent in 2023. According to the bank, Azerbaijan's real GDP will reach 2.7 percent next year.

Also, the EBRD plans to provide a senior secured loan of $60 million to the Azerbaijan Caspian Shipping Company (ASCO).

The loan is allocated for the acquisition of vessels as part of the international expansion strategy.