President of the European Bank for Reconstruction and Development (EBRD) Suma Chakrabarti, who is on a visit to Azerbaijan, has discussed the economy and banking sector in the meeting he held.
According to him, the economic growth is impossible to accelerate without changes in banking system: “The economy may grow when the local banks are able to grant loans. So, the economy is too dollarized and everyone accepted it. Therefore, a relevant mechanism must be prepared for restoration of lending in manat. It would be better to issue manat-nominated bonds. Troubled loans increased in Azerbaijan. However, this is observed in other countries too. The main point in here is that repayment culture has not been formed yet. This issue must be solved in order to prevent banks to take next wrong step”.
The EBRD President noted that his bank may issue manat-dominated bond: “However, there must be proper conditions. Regulating steps for issuance of manat-dominated bonds have been taken. The EBRD has issued bonds in national currencies in other countries. The market must be ready for it”.
Chakrabarti added that the EBRD is interested in participation in the SGC project.
EBRD ready to issue Azerbaijani manat-denominated bonds in 2016
25 May 2016
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The European Bank for Reconstruction and Development (EBRD) is ready to start issuing bonds denominated in Azerbaijani manat, Suma Chakrabarti, EBRD`s president, said at a press-conference in Baku May 25.
