Economic Growth in Azerbaijan Only Possible by Lending - EBRD President

Economic growth in Azerbaijan is only possible with the resumption of lending. This was stated by the EBRD President Suma Chakraborty at the press conference on the results of the European Bank of Reconstruction and Development (EBRD) delegation's visit to Baku on May 25.

He noted the high level of dollarization in the banking sector, the volume of bad loans and their repayment. "There has been progress in the banking sector. If the banking sector is not restored, there can be no talk of economic development and diversification," he said.

Asked by Turan News Agency about plans to issue and place bonds in the financial market of Azerbaijan in national currency, referred to since 2015, the EBRD President said this practice is experienced on other countries and the bank intends to implement it in Azerbaijan in 2016. "The regulatory framework is ready for this, but it is necessary that the financial sector and investors should be ready for it."

The EBRD President said the bank has a positive attitude to involvement in the financing of the Southern Gas Corridor.

Regarding the business climate, Chakraborty said the country conducts large-scale reforms and "an important fight against corruption", and improves its economic policies.

EBRD President expressed satisfaction with the bilateral relations level and the volume of investments in Azerbaijan's economy by EBRD.

Over the past two years, 270 million USD was invested in approximately 30 projects implemented in Azerbaijan.

During the visit there were meetings with President Ilham Aliyev, at the Ministry of Economy, the Central Bank and the Financial Markets Control House, with commercial banks, representatives of civil society, etc.

To date EBRD has participated in the financing of 164 projects, including 154 in the non-oil sector, totaling $ 2.9 billion.   ---08C--