The International Monetary Fund (IMF) considers a fivefold increase in the requirements to a minimum capital of banks in Azerbaijan as a positive step if it is combined with the new regulations on non-performing loans and reserves for covering losses on loans, head of the IMF completed mission on Azerbaijan Raja Al Marzugi, who is also advisor to the IMF director on Middle East and Central Asia said at a press conference in Baku on Tuesday.
“Prudential measures may help regulate credit growth rates, especially consumer lending,” he said. He added that despite still continuing preparation, the mission regrets about the current delay in conducting the joint Financial Sector Assessment (FSAP) by IMF and World Bank, as it is extremely important for the banking system. FSAP assessment will be conducted in early 2014 in coordination with the official bodies. “State bodies explain this by big changes expected to occur in the Azerbaijani financial market in the coming year,” he said.
