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Rufiz Chiragzadeh: â€œFinancial sector is not sufficient to support mid-trem development of non-oil sector in Azerbaijanâ€

05 October 2012 11:06 (UTC +04:00)

According to him, poverty reduction from 49% to 16% in 2001-2008 was a result of economic growth: â€œBut this growth arose from oil and gas extraction. These incomes probably will remain at the stable level during next decadeâ€.

WB representative considers that, development of non-oil sector and diversification of economy is important to save the growth. According to him, Azerbaijanâ€™s financial system can play an important role in provision of this development.

Chiragzade stressed that, Azerbaijanâ€™s financial system contributes to creation of new jobs. But, services of financial sector only include banking services: â€œFinancial sector is not sufficient to support mid-term development of non-oil sector in Azerbaijan. If we take this into consideration, development of capital markets is very important from the standpoint of increase of quickness of financial sector and involving new capital in the countryâ€.

He said, therefore, Azerbaijan needs traditional non-bank financial organizations and especially securities market: â€œAt present, those demands are not metâ€.