Lowering the discount rate by the Central Bank does not lead to serious changes

Lowering the discount rate of the Central Bank does not lead to serious changes in the financial system, the chairman of the non-governmental Centre for Economic and Social Development Vugar Bayramov said.

Despite statements by low inflation, the market prices are increasing steadily. In terms of support for the diversification of the interest rate reduction is also not yet a tool for strategic impact. Today a large role in the development of the oil sector should play no accounting policies, and the free exchange rate of manat, but there is regime ratio of local currency and the major currencies of the world.

In addition, centralized loans account for only 5% of all bank funds raised, and this eliminates the role of the interest rate in attracting plenty of loans. Centralized loans do not cover the entire banking system, since not all commercial banks are able to attract them. Leading banks in the country do not attract this kind of loans.

According to the scientist, despite low interest rates defined by the Central Bank, the terms of attracting such funds because of unfavorable mortgage terms, credit terms, etc. In comparison with other countries to apply for loans to local centralized banking structures formed within the framework of the "open window" that restricts the use of these funds.

Bayramov believes that for the recovery of the banking sector of Azerbaijan, in particular, it is necessary to take steps towards its liberalization and elimination of the source of unfair competition. - 17D-