Azerbaijan's banking system, reeling from the February devaluation of the national currency (minus 34.5%), today received another shock therapy (minus 48%).
Bankers were informed about the unpopular measure of the Central Bank, but that it is not easier. The entire loan portfolio (banks and non-bank credit organizations as of November 1, issued 18 billion 566.4 million AZN) is tied to the US dollar and the euro, so that the bad loans hung more heavily on the credit institutions.
Furthermore, private production will stop, including the spheres of agricultural industry, construction, trade and services that will become more passive because of the falling consumer demand. The SSC will not be able to report on the acceptable level of inflation. --17D-
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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