CBA to Lend to Banks under New Rules

The rules of the Central Bank of Azerbaijan loans to banks came into force on May 19.

According to the order number 25/1 signed by the Chairman of CBA Elman Rustamov, one-time loans or in the form of credit lines are divided into 3 categories for the purpose of refinancing for the period from 30 days to 1 year or more, loans of last resort, and special credits.

Loans are granted through auctions - directly (without a fixed interest rate) or without declaring the amount of lending.

Refinancing can be secured either by stocks and bonds issued by banks or by foreign currency on their own accounts. Loans for a period more than a year are given by the decision of the Board of CBA.

The so-called loan of last resort shall be issued on the basis of request from FMCH for not more than six months, by the decision of the CBA Board for a maximum of 2 working days, and it must be provided, except shares and bonds, or foreign currency on the accounts of banks, by state guarantees , real estate and gold.

Guarantee in the form of state guarantees and state securities must be at least 100% of the principal amount of the loan and interest thereon.

Guarantee in the form of bills, gold and individual securities must be at least 110%, and in the form of real estate - 150%. --17D-

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