BAKU, Azerbaijan, November 30. The Board of the Central Bank of Azerbaijan (CBA) has given the green light to the "Rules for managing credit risks in non-banking credit organizations (NBCOs)" this week, Trend reports.
Meanwhile, the Azerbaijan Insurers Association (ASA) and the Union of Insurance and Reinsurance Companies of Northern Cyprus have signed a memorandum.
The memorandum outlines areas of cooperation, including staff, experience, and information exchange; the development of new joint insurance products; as well as the establishment of reinsurance connections between the two countries.
Representatives from the National Depository Center (NDC) of Azerbaijan and the Bank of New York Mellon (BNY Mellon) have discussed the prospects for custody services.
Moreover, this week has seen the adoption of Azerbaijan's state budget for 2025 by the parliament in the first reading.
According to the document, the budget revenues amount to 38.3 billion manat ($22.6 billion) and expenditures are 41.36 billion manat ($24.4 billion). These amounts include centralized revenues – 37.5 billion manat ($22.15 billion), local revenues – 795 million manat ($468 million); centralized expenditures – 40.56 billion manat ($23.93 billion), and local expenditures – 800.3 million manat ($472 million).
Speaking during discussions on the state budget for next year in the Azerbaijani Parliament, the Minister of Economy Mikayil Jabbarov said that GDP per capita is projected to reach $7,200 by the end of this year.
The European Bank for Reconstruction and Development (EBRD) has renewed data for Azerbaijan's project portfolio this week.
The portfolio was estimated at 871 million euro as of October 31, 2024.
The majority of the portfolio (91 percent, or 792 million euro) was revealed to be aimed at investments in sustainable infrastructure, six percent (49 million euro) in the corporate sector, and three percent (30 million euro) in investments in financial institutions.
Besides, EBRD has projected that Azerbaijan’s annual inflation rate will slow down in 2024, reaching 3.5 percent, compared to 8.8 percent in 2023, and the country's real GDP will grow by 3.8 percent in 2024, with a slowdown to 2.7 percent in 2025. The current account surplus in Azerbaijan was projected to equal 8.5 percent of GDP in 2024.
The International Islamic Trade Finance Corporation (ITFC) and the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) were reported to jointly develop a regional investment attraction plan for all Central Asian countries.
The ITFC presented its Trade Connect Central Asia+ (TCCA+) Program at COP29. Check out the extended interview version for additional information about the TCCA+ program.
Additionally, ITFC has launched an initiative aimed at supporting start-ups and small and medium enterprises (SMEs) in Central Asia.
Chief Operating Officer of Trade Solutions Complex at ITFC, Nazeem Noordali, said in an exclusive interview that ITFC is targeting around 10 banks and financial institutions in Azerbaijan to establish financing lines.
"We are now implementing a similar model in Tajikistan, Kyrgyzstan, and Azerbaijan. Our partnership in Uzbekistan began in 2018 with just one bank, and we have since expanded to 12. We aim to replicate this success in Azerbaijan, targeting around 10 banks and financial institutions to establish financing lines.
Our main focus in Azerbaijan will be to provide financing through local banks, serving as intermediaries. We plan to allocate lines of financing ranging from $20 million to $30 million for import and export activities, which will then be distributed by these banks to their primary SME clients. This approach aligns with Azerbaijan's dynamic economy, where the private sector plays a vital role," Noordali added.
The Board of Governors of the Asian Development Bank (ADB) has elected Masato Kanda as the bank’s 11th President. He will assume office on February 24, 2025, and hold the post until November 23, 2026.
Director of the EU Projects Department of the Latvian Chamber of Commerce and Industry, Liga Sičeva, said that the chamber is preparing to launch new projects in Azerbaijan.
"In the framework of the LEF Network Azerbaijan project, we collaborate not only with Azerbaijan but also with Estonia and Finland. This project, funded by the EU’s Inter-Central Baltic Program, is unique in that it brings together four countries to support exports. The project lasts three years, and we are now nearing the end of the second year. The final year will be 2025.
As part of the project, we organize mutual trade missions: Latvian, Estonian, and Finnish companies visit Azerbaijan, and Azerbaijani companies come to us. We are also looking for new sources of financing and preparing to launch new projects in 2025," she emphasized.
