10 January 2020, Baku: The Central Bank management met with the National Confederation of Entrepreneurs’ Organizations of the Republic of Azerbaijan (NCEO), the Azerbaijan Banks Association (ABA) and entrepreneurs. The main goal of the meeting was to expand and deepen the scale of ties between the real sector and the financial system as the two critical pillars of the national economy; boost the quality of the said ties with the most progressive economic management technologies and identify problems and ways out by an active dialogue between entrepreneurs and the financial and banking sector.

Speaking at the meeting Elman Rustamov, Governor of the Central Bank highlighted the tasks assigned to regulatory institutions and the financial sector by the President Ilham Aliyev on macroeconomic stance and socio-economic development; he noted that important work had been done under the guidance of the country leadership on sustaining macroeconomic and financial stability; related large-scale deep reforms continue. Macroeconomic stability has been safeguarded for three years in a row. Being within the target band inflation caused certainty in economic conditions and rendered critical support for economic activity. The exchange rate of our national currency is the key anchor of macro-economic stability. The Central Bank eased the monetary condition by both decreasing cost and increasing the value of money last year in light of macroeconomic stability.

Speaking about financial stability, he mentioned that financial stability is safeguarded despite some lingering fragilities across the financial sector in parallel with lending recovery. The Bank pushes efforts to increase the role of financial institutions in supply of resources for economic activity in the real sector and improve access of economic agents to financial services across all levels.

Taking the floor the managers of the NCEO, the ABA, the SMEs Development Agency of the Republic of Azerbaijan, commercial banks and entrepreneurs noted that such events between entrepreneurs and the financial – banking sector is of high importance; ongoing and active dialogue will both improve access of entrepreneurs to financial – banking services and contribute to development of production and services and accelerate non-oil growth in particular.

The participants also listened speeches on prospects of cooperation between entrepreneurs and financial institutions, foreign exchange regulation, the securities and stock market, financial accessibility and development of micro financial institutions and cashless settlements; problem loan restructuring, and discussed burning problems for banks. It is vital to take stimulating measures to attract healthy actors to capital markets. The participants mentioned that financial literacy should be further intensified for successful cooperation between the real sector and the financial – banking sector.

Summarizing the outcome of discussions, E.Rustamov mentioned that the meeting was very useful. He said that the Central Bank will in-depth study the issues raised and proposals sounded at the meeting and work together on the said directions. The Bank will take prompt measures on resolving tactical issues, and deliver relevant proposals to the Cabinet of Ministers on strategic issues that require legislative base improvement and government’s decision. The Central Bank will institutionalize such meetings and hold them regularly.

Summing up the meeting it was mentioned that this year and upcoming medium term is considered to be a strategic horizon in terms of transition to a new economic growth model, sustaining macroeconomic and financial stability and pushing the role of the financial – banking sector in the real sector development in line with the growth strategy set forth by Honorable President. It was emphasized with confidence that new generation reforms conducted under the leadership of President Mister Ilham Aliyev will allow all social groups to benefit from economic growth and a strong and sustainable financial system.

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