BAKU, Azerbaijan, December 21. The Central Bank of Azerbaijan (CBA) decided this week to leave the discount rate unchanged at 7.25 percent; the upper and lower limits of the interest rate corridor also remained unchanged at 8.25 percent and 6.25 percent, respectively, Trend reports.
“The decision to keep the discount rate unchanged was based on actual and projected inflation within the target range (4±2 percent) and analysis of macroeconomic trends. The next decisions on the parameters of the interest rate corridor will be made taking into account actual and forecasted inflation, as well as the dynamics of internal and external risk factors,” the CBA said in its commentary.
In addition, the CBA expects stability in the foreign exchange market in 2025 and also forecasts that within the framework of the baseline scenario, the inflation forecast in Azerbaijan for the end of 2024 and 2025 will remain within the target level (4±2 percent).
Moreover, IFC, a member of the World Bank Group, has issued bonds denominated in Azerbaijani manats (AZN) to increase access to credit for micro, small, and medium-sized enterprises, support low-income households, and finance green projects in Azerbaijan.
The four-year bonds raised 34 million manat (equivalent to $20 million), which will increase access to climate finance for businesses and low-income households, supporting the development of climate projects in the country.
Meanwhile, it was also reported that Azerbaijan is among the top 3 recipients of investments in the Eurasian region. Namely, the top three recipients of investment in the Eurasian region are Kazakhstan, Uzbekistan, and Azerbaijan, which are respectively $10.446 billion (22.6 percent), $10.1 billion (22.1 percent), and $5.8 billion (12.6 percent). Together, these three countries account for almost 60 percent of total reciprocal FDI at the end of the first half of 2024.
Chairman of the Central Asian Fintech Association Otabek Nasyrov told Trend in an exclusive interview this week that the association plans to sign several agreements in Azerbaijan.
“Taking into account our long friendship with the Azerbaijan Banks Association, we plan to sign a partnership and cooperation agreement between us soon. We also hope to sign a similar agreement with the Fintech Association of Azerbaijan. These agreements will become the basis for building a more active dialog between fintech companies and traditional banks of Central Asia and Azerbaijan, as well as a great opportunity for sharing experience and knowledge. As you know, the post-pandemic market in Central Asia is growing rapidly, especially in fintech and e-commerce. My colleagues from the Association of Banks of Azerbaijan and I are convinced that many successful projects from Central Asia can be implemented in Azerbaijan,” he said.
This week Kapital Bank held a press conference on the results of activity for 11 months of the current year and plans for the next year.
During the conference, it was noted that Kapital Bank's branch in Shusha city is planned to open in the first quarter of next year.
Furthermore, Kapital Bank forecasts a net profit of 180 million manat ($105.8 million) - 190 million manat ($111.7 million) for the year (240 million manat ($141.1 million) - 250 million manat ($147.05 million) according to IFRS).
The main topic of the conference was the announcement that from the first quarter of 2025, Kapital Bank will start the brand transformation to Birbank.
“This does not mean that the Kapital Bank brand will completely disappear. You will see Kapital Bank as a financial institution and corporate brand. We will offer all our products and services to our customers under the Birbank brand,” said Farid Huseynov, Chairman and CEO of Kapital Bank.
However, it was noted that customers will be able to receive all products and services through the Birbank website and app. “In addition, Kapital Bank branches will also be transformed into Birbank branches, and this process will take about two years,” Huseynov explained.
