BAKU: A conference themed ‘Innovative Solutions for Sustainable Microfinance’ in Baku has highlighted Azerbaijan’s strategic efforts to enhance the microfinance sector through regulatory updates and digital initiatives. The event, attended by key financial stakeholders, underscored the Central Bank of Azerbaijan’s commitment to advancing micro and small entrepreneurship while ensuring robust cybersecurity measures.

According to Trend News Agency, Togrul Aliyev, Director General of the Central Bank of Azerbaijan, announced ongoing initiatives to update prudential regulations for non-bank credit organizations. These efforts aim to boost competitiveness and expand financial services within the microfinance sector. Aliyev emphasized the integration of digital technologies as a core component of the Central Bank’s strategy, with a focus on information security and cybersecurity management. He noted that the bank had established comprehensive information security requirements for the financial sector in March, sig
naling a sustained regulatory focus in the years ahead.

Osman Khaliyev, Chairman of the Management Board of the Entrepreneurship Development Fund, reported that the Fund has disbursed preferential loans totaling over 3.2 billion manat ($1.8 billion) through more than 50,000 applications. The Fund collaborates with 40 authorized lending organizations and plans to expand partnerships to include more microfinance institutions. Khaliyev highlighted recent procedural improvements, such as reducing documentation requirements and eliminating the need for business plans for loans up to 200,000 manat, to streamline the loan distribution process.

Tamerlan Meshedihasanli, head of the Products and Services Department at AzInTelecom LLC, announced efforts to integrate additional Azerbaijani banks into the SIMA Imza electronic signature system, which currently includes around 10 banks. This initiative is part of a broader push for digitalization within the banking sector, with Meshedihasanli noting that integration chall
enges stem from the ongoing digitalization process rather than payment issues. Additionally, he mentioned plans to introduce the SIMA Access system for building security, pending successful testing, to the local market next year.