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II Investorsâ€™ Fair kicks off in Baku

04 October 2011 09:25 (UTC +04:00)

At the event titled â€œTackling Over-indebtedness in Azerbaijanâ€ board chairman of AMFA Suleyman Kalashov said that over-indebtedness was one of the troublesome issues for the credit organizations, as well as for customers.

To him, law on non-banking credit organizations was passed in Azerbaijan in 2010 for the prevention of over-indebtedness: â€œThis law considers including of CBA into the Central Credit Register Service. And this is one of the important tools in prevention of over-indebtednessâ€.

Kalashov said that currently there were 19 non-banking credit organizations in Azerbaijan: â€œThese organizations render services via 150 branches in 66 regions of the country with 160,000 customers. More than 2000 Azerbaijani citizens work at these organizations. Total loan portfolio of these organizations makes AZN 250 mlnâ€.

Delivering speech at the event US ambassador to Azerbaijan Matthew Bryza said that he liked financial reforms conducted in Azerbaijan by the Central Bank, currently, Azerbaijan is in the first place in the CIS space for the reforms conducted in the banking sector: â€œDifferent rallies are held in Azerbaijan. But nevertheless, some novelties can be shown in diversification of the economy. Besides, the US is interested in countryâ€™s agriculture too. 40% of labor force of the country works in agricultural sector. Despite this, the share of agricultural sector in GDP is 6%. So, this sector has a great potential. The US intends to bring to the European and American companies in Azerbaijan for the development of this sphere. And this in turn will spur the development of agricultural sector of Azerbaijanâ€.

General Director of CB Rashad Orujov noted that the CBA was interested in developing the microfinance sector. To him, the greatest success in the field of microfinance is the adoption of the law on non-banking credit organizations: â€œAccording to the relevant article of the new Law, 6 non-banking credit organizations issued a license, other organizations - at the stage of licensing, technical problems are being solved. The dynamics of non-banking institutions is high. Thus, the growth of total loan portfolio since the beginning of the year was 20%. There is a growing capitalization, which is a very important issueâ€.

Speaking on the activities of the Central Credit Register Service of the CBA, Orujov noted that this service was connected to seven non-banking institutions, the others on the stage of connection: â€œIn general, 60% of these organizations have joined this serviceâ€.