Refinancing hits historical high in Azerbaijan

Refinancing hits historical high in Azerbaijan
# 30 December 2008 15:11 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. Refinancing has hit a historical high in Azerbaijan, said the National Bank of Azerbaijan.
The central bank said the volume of refinancing stood at AZN 178.4 million as at December 1, up 96.8% on a year earlier.

Refinancing transactions are carried out as part of the regulation of liquidity in banking system.
The national bank widely uses repo transactions as an instrument to regulate liquidity.
Repo is a one-day transaction while refinancing is medium-term one.
The increase in refinancing shows a decrease in liquidity of banks.
However, AZN 178.4 million is not so large amount.
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