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Azerbaijan to free up billions of manats for economy stimulus

20 January 2009 11:36 (UTC +04:00)

He also added that the government is dwelling on the issue of supplying the economyâ€™s demand for money.
According to him, there are plans afoot to funnel money in stages to the economy through state programmes in order to reduce and neutralize the impact of external factors on the production sector and employment in the country amid a probability of low liquidity due to a large sum of foreign loan repayment by banks.
He said several billions of manats is required to meet the demand of the economy but no exact figure has been set yet.
â€œSeveral hundred million of manats is not enough to feed the economy at present. We at least need to replace the $2.5 billion our banks repaid for foreign loans over the past two years. We will also continue to soften the monetary policy. Some countries have cut key rates to zero but this level will not be reached in our country unlike the developed countries. But, we will continue to soften both refinancing rates and mandatory reserve requirements. Our main goal is to achieve economy and business recovery and maintenance of the employment level,â€ he underlined.