World Bank: Azerbaijan’s Financial System Needs Reform
The World Bank considers it necessary to conduct reforms in Azerbaijan, aimed at improving the affordability and inclusiveness. This is stated in the report "Financial capacity and strengthening inclusiveness in Azerbaijan", which was presented to the public on May 24.
The report was prepared on the basis of interrogation of 4.62 thousand people and revealed the lowest rate of bank accounts for each adult. For example, in Azerbaijan, only 36.4% adults have a bank account. In Kazakhstan this figure is higher - 53.9%, in Turkey - 56.6%, in Romania - 60.8%, and in Serbia - 83%.
Azerbaijan is also one of the lowest in the banking network in Europe, which is determined by the number of bank branches per 1 thousand adults.
WB considers insufficient the development of modern banking services in Azerbaijan. "Azerbaijan should develop a modern banking platform, such as e-banking, mobile banking, said the chief specialist of the Bank’s financial sector Angela Prigozhina, noting that this also applies to non-bank credit organizations.
The low level of inclusiveness significantly reduces the participation rate of young women in economic activities. The World Bank believes this is due to the weakness of the financial base and the high cost of basic financial services.
WB recommends to the Government the adoption of the National Strategy for Financial Literacy aimed at improving the financial knowledge of the population. The bank, in turn, implements a project to increase the financial literacy of the population. -0-
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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