`Problems in financial market stem from Central Bank`

  28 September 2016    Read: 1103
`Problems in financial market stem from Central Bank`
“Problems are arising in the financial market of Azerbaijan”, MP Vahid Ahmadov said at the meeting of Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis (Parliament).
According to him, amendments to the Law on Central Bank and other laws cause serious problems in the financial market: “The Central Bank wants to restrain inflation by reducing manat money supply. Finance Ministry is trying to prevent budget deficit. Financial Markets Supervisory Authority wants banks not to give loans in order to avoid having problems. All these create problems”.

Ahmadov added that the relevant bodies should take actions to ensure financial and economic stability.

MP Ilham Aliyev noted that problems in the financial market stem from the Central Bank of Azerbaijan: “It’s true, the banks are now controlled by the Financial Markets Supervisory Authority, but they were controlled by the Central Bank earlier. Couldn’t it be possible to forecast that problems will occur in the closed banks?”

Answering Aliyev’s remarks, the deputy chairman of the Central Bank Aftandil Babayev said such problems are observed in many countries: “Banks are shut down in other countries too and new ones are opened. Earlier, 200 banks operated in Azerbaijan. But thereafter, some of them were shut down, new ones were opened. The Central Bank regularly controlled banks to fulfil their obligations before their clients. Problems in the banks have been arisen from global economic processes. You know that Azerbaijan’s economy, the banking system have integrated to the world economy. Specially, oil price decline affected condition of the clients and this caused deterioration of banks’ stability and cancelation of licences. That’s this is a normal process”.

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