Azerbaijan to prepare special program on financial stability

Azerbaijan’s banking sector is under a thorough scrutiny, Elman Rustamov, head of the country’s Central Bank, told reporters May 24.

Rustamov said a special program on financial stability will be prepared and then implemented following a banking sector diagnosis.

“I think Azerbaijan’s all macroeconomic structures, namely, the Ministry of Finance, Central Bank and Financial Market Supervisory Body are jointly working to ensure the financial stability in the country, diagnosing the banking sector,” he said. “The financial stability program will be created following this work and then will be realized.”

Referring to the opinion of Moody’s international rating agency analysts that Azerbaijan’s banking sector is on the verge of default, Rustamov said that this statement is premature.

“It would be better to hold several meetings in Azerbaijan and carefully examine the banking sector before making such statements,” he said. “Moody’s delegation will visit Baku in the near future and hold meetings with all macro-economic institutions of the country.”

Rustamov said that the first stage of restructuring Azerbaijan’s banking sector has been successfully completed.

“AG Bank’s capitalization has been conducted,” he said. “Together with Azerbaijan’s Financial Market Supervisory Body, we have solved the problem of the bank’s liquidity and the bank returned to the country’s banking market.”

“The recovery program of another bank – Bank Standard is being discussed,” he said. “We will disclose this program in the near future.”

Source: Trend