BAKU, Azerbaijan, June 22. This week, the CBA (Central Bank of Azerbaijan) chose to maintain the discount rate at 7.25 percent, Trend reports.
According to the CBA, the upper and lower limits of the interest rate corridor also remained unchanged at 8.25 percent and 6.25 percent, respectively.
"This decision was taken taking into account the comparison of actual and projected inflation with the target (4±2 percent), the dynamics of inflationary factors, and the assessment of the balance of risks. Neutralization of factors that increase and decrease inflation is one of the reasons for the decision on the interest rate corridor," the information noted.
Moreover, it became known that the strategic foreign exchange reserves from January through May this year increased by $1.3 billion, or 1.8 percent, and reached $69.7 billion.
EIB Global confirmed this week that it is prepared to collaborate with Azerbaijan in both the public and private sectors to finance initiatives in priority areas of mutual interest.
"EIB Global's strategy in the South Caucasus is driven by the priorities of the European Union. The recent loan provided by Bank Respublika contributes to the objectives of this plan and is part of our initiative to spread the word about MSMEs in the South Caucasus. The Economic and Investment Plan also includes priority investment projects and we are discussing their implementation with the Azerbaijani government," Maciej Chura, head of the EIB's regional office in the South Caucasus, told Trend exclusively.
Besides, it was reported that Azerbaijan has its sights set on ramping up the size of the insurance market and fine-tuning its optimization.
"The strategy for the development of this sphere for 2024–2026 has been developed and adopted by the Central Bank's management. As a result of this strategy, ensuring stability has been identified as the main priority. It is planned to increase the volume of insurance services and their optimization. The principle of "minimum investment, optimal level of service" will be realized. The introduction of six modern technologies will increase the availability of insurance services and ensure a high level of customer satisfaction, which, in turn, will help optimize our system as a whole. Taking all these aspects into account, the Central Bank has initiated a process of special regulation. It also concerns support of innovative changes and improvement of management efficiency, which is an important priority in the context of climate change and increasing number of insurance claims, which lead to significant costs for both the population and the economy," Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov noted this during the opening ceremony of the Azerbaijan International Insurance Forum-2024 (AIIF-2024).
Furthermore, it became known that reinsurance can really beef up the sustainability of Azerbaijan's economy, cutting down on financial risks and adding to the stability of the insurance market.
Moreover, this week on the sidelines of the Azerbaijan International Insurance Forum-2024 (AIIF-2024), Asoba CEO Vladimir Korobushkin exclusively told Trend that the company intends to enter the Azerbaijani market.
"We seek to find a partner who could represent our interests and provide assistance in solving arising issues on the territory of Azerbaijan. In return, we are ready to provide similar support to the clients of this partner in Belarus, gratuitously assisting in the settlement of insurance claims, including evacuation if necessary. Logistic flows from Belarus are now increasingly directed to China, Türkiye, and Azerbaijan. Therefore, it is especially important for us to find a reliable partner for mutually beneficial cooperation, which is what conditioned our participation in this forum," he said.
Also, the source in the Azerbaijani insurance company, Ateshgah stated that the company is studying the possibility of insuring electric scooters.
In addition, it was reported that PASHA Life Insurance intends to offer customers bancassurance.
"We intend to offer bancassurance to customers. At the moment, it is life insurance for borrowers. We are confident that this product has great potential, as it will be very attractive for customers and will be an important addition to our portfolio," said the General Director of PASHA Life Insurance Niyaz Ismailov noted during the panel discussion " Bank Insurance: Distribution distribution channel for acceleration and increase of insurance penetration" within the framework of Azerbaijan International Insurance Forum-2024 (AIIF-2024).
Meanwhile, this week it became known that The Bank of New York Mellon has become a correspondent bank of "Xalq Bank". As part of this important cooperation, Hulg Bank has opened accounts with Bank of New York Mellon, one of the largest banks in the US.
This cooperation, which contributes to the expansion of Xalq Bank's international correspondent network, confirms the Bank's high business reputation on an international scale. The opening of a correspondent account with a US bank will make it easier and faster for Xalq Bank's customers to make transactions in foreign currency.
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