If banks can not compete in the market, for them would be better to go for a merger or consolidation of business, said the head of the International Bank of Azerbaijan (IBA) Jahangir Hajiyev.
He said that he considered appropriate the presence in the banking sector of about 20 instead of the current 43 banks, with the merger to go on the market principles. "Corporate and big banks periodically increase their capitals to expand their business, but I cannot judge if it is necessary for retail banks and those that deal with microfinance. Rather, this aspect should be taken into consideration. The Central Bank now monitors the performance of the decision to increase capital, and upon its completion we will have real results," he said.
Hajiyev also noted that the International Bank of Azerbaijan is not even considering the purchase of any local bank, because there is no sense to buy a bank with a network in the same place, where the bank already has divisions. - 15B -
Economics
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Azerbaijan President Ilham Aliyev has signed a decree to strengthen social protection for pensioners by implementing pension indexation, effective from January 1, 2025.
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The Italian government has extended the deadline for applications in the international tender for the sale of several strategic assets until February 14, confirming that a bidder from Azerbaijan remains among the frontrunners.
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An investigation led by Ghalib Toghrul, Chairman of the Board of the Center for Economic Research, has highlighted budgetary expenditures in the Azerbaijani districts of Aghdam, Fuzuli, and Khojavend, focusing on civil service projects linked to the reconstruction of territories liberated from Armenian occupation.
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On February 4, Azerbaijani Economy Minister Mikayil Jabbarov met with a delegation of the International Monetary Fund (IMF) led by Anna Bordeaux, head of the IMF mission in Azerbaijan, to discuss economic cooperation, financial sector issues and structural reforms, the ministry said.
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