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-
Economics
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Last week, Azerbaijani media reported an impending increase in retail bread prices, attributing the rise to an increase in product weight. The following day, an official notification confirmed that the government had no intentions of sanctioning a bread price hike in the country. However, the threat of a price increase for this staple food remains for another reason.
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S&P Global Ratings has revised its risk assessment of Azerbaijan’s banking sector, upgrading the outlook from "stable" to "positive."
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In recent days, there have been claims that bread prices in Azerbaijan have risen. Social media users report that the price of bread has increased by 5-10 qepiks. According to consumer complaints, it is difficult to find weight information on factory-produced bread, commonly known as "zavod çörəyi" in Azerbaijan. In many cases, bread packaging does not include weight details. Similarly, bread sold at smaller bakeries and tandir houses often lacks information apart from the price.
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A trilateral meeting of the foreign ministers, transport ministers, energy ministers, and heads of customs services of Russia, Iran, and Azerbaijan is set to take place soon to discuss the progress of the Rasht-Astara railway project, a key element of the International North-South Transport Corridor (INSTC). This was announced by Iran’s Ambassador to Russia, Kazem Jalali.
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