Azerbaijan, Baku, Oct. 2 / Trend A. Akhundov /
Azerbaijani non-bank credit organizations will be able to diversify their sources of funding as a result of the involvement of the country's exchange currency system on the monetary market, executive director of the Azerbaijan Microfinance Association (AMFA) Jala Hajiyeva told Trend today.
The Baku Interbank Currency Exchange (BBVB) is negotiating with non-bank credit organizations for their participation in the "Money-Market" of the Bourse E- System of Trades (BEST). The non-bank credit organizations will make the third category of BEST users (after the banks and insurance companies).
According to her, presently, microfinance organizations have few financing instruments. They either borrow or attract foreign investors.
Around 30 foreign investors, including Incofin, Triple Jump, Symbiotics, the International Finance Corporation (IFC), European Bank for Reconstruction and Development (EBRD), the German Development Bank (KfW) and so on are working on the Azerbaijani microfinance market. One or two new external investors appear on the local market every year.
"Today, there is a need for alternative sources of funding," she said. "From this point of view, the work with BBVB will be a good opportunity for non-bank credit organizations. This tool development in the future may reduce the non-bank credit organizations' dependence on the international investments."
According to BBVB head Farhad Amirbayov, non-bank credit organizations can become full participants on the monetary market, that is can work as borrowers and creditors.
"The non-bank credit organizations, as well as the banks are regulated by the Central Bank," he said. "They use the same calculations, that is, they are transparent for the commercial banks. This is the third class of BEST institutional users."
