Finance

Finance

Azerbaijan to expand mortgage lending in 2010

30 December 2009 17:10 (UTC +04:00)

Baku. Vahab Rzayev - APA-ECONOMICS. The Central Bank of Azerbaijan will support the achievement of the 3% average annual inflation rate forecasted for 2010Ã§ said the Central Bank in a report canned the monetary policy priorities in 2010.

â€œAt the same time, this forecast may be adjusted depending on the factor of aggregate demand and the impact of global economic recovery,â€ said the report.

According to the report, the central bank will also continue its policy of maintaining stable exchange rate of manat and preserve the international competitiveness of the country.

â€œIn the medium term, CBA will begin creating and implementing a new monetary policy designed to meet the post-crisis needs.
Measures to protect the financial stability in the coming year will primarily focus on adaptive management of risks in the banking system. To implement this objective, in 2010 the Central Bank will continue the policy of financial reserving and capitalization in the banking sector, maintaining liquidity at an acceptable level, strengthening control over the quality of the loan portfolio of the banking sector, and enhancing the capacity of corporate governance and risk management.
It is intended to take measures for institutional development of the financial sector, which primarily include the consolidation of the banking system and restructuring in the banks of highly importance,â€ said the report.

The report also said that in accordance with the requirement of capitalization of the economy new mechanisms for entering the financial resources and promotion of institutions will be provided. With the main focus on accelerating this process in the regions, activities of non-bank lending institutions will be expanded, micro-financing network and mortgage lending will be expanded and social mortgage lending will be continued. At the same time, with a view to preparing a new mortgage model as part of improvement of the existing mortgage lending mechanism, appropriate measures will be taken for the start of the housing, building-savings banks. In addition, next year it is intended to launch a new network for postal and banking services and financial intermediation and to increase the scale of non-cash payments.