Road Map of Financial Services Promulgated

The Strategic Roadmap of Development of Financial Services in Azerbaijan has been promulgated

According to the document, the main objectives are the creation of the financial system on the basis of dynamic and healthy financial institutions, the development of financial markets, the strengthening of infrastructure, the improvement of regulatory and supervisory mechanisms, and financial literacy.

According to Turan’s experts, such plans have been voiced before, but this is not a strategy, but tactics. In addition, a healthy financial system should be based on a healthy real economy and trade, Azerbaijan is still dependent on hydrocarbon exports. Moreover, all banks in the country, with the exception of the CBA, suffocate without foreign currency against the background of capital outflow abroad in 2014. There is uncontrollably booming black market of currency under the "roof" of the financial and credit institutions.

The government, referring to the difficult situation, refers to the foreign shock effect that has increased the sensitivity of the local financial system to risks. “Against the background of growing risks the lack of strategy and business model focused on sustainable and long-term goals at several financial institutions, as well as simple risk management, has complicated the adaptation of the financial system to the new economic situation and limited financial intermediation,” the document says.

The government optimistically asks for AZN 115 million for the implementation of the road map, which will allow increasing the country's GDP by more than AZN 750 million before 2020. --17D-