The prospects for development of the ongoing cooperation between the Central Bank of Azerbaijan (CBA) and the International Monetary Fund (IMF) were discussed at the meeting between the head of the Central Bank Elman Rustamov and IMF's consulting mission headed by Raja Almarzugi on March 4.
The visit of the IMF mission to Baku began on March 4 and will last until March 17. The purpose of the visit is to hold consultations with the government of Azerbaijan on Article 4 of the agreement on creation of IMF.
During the meeting with the mission, Rustamov informed the guests about the economic growth of Azerbaijan, macroeconomic stability, development of the non-oil sector, diversification of the economy, the monetary policy of the CBA, the development of the country's banking sector and other issues.
The monetary policy will be effectively regulated in 2014 and in the medium term, taking into account the objectives of economic growth and price stability, according to CBA head.
The following issues are particularly important: finding the optimal balance between the objectives of growth of bank assets and stability, synchronization of monetary and macro-prudential policy, formation of a framework for counter-cyclical banking supervision and regulation of the financial sector to prevent it from overheating, Rustamov said.
The head of IMF mission for his part positively assessed the rates of development, as well as the financial and macroeconomic stability in Azerbaijan. Emphasizing the short-term and medium term tasks of the country, the parties exchanged views on joint work between Azerbaijan and IMF in this field.
Azerbaijan joined the IMF on September 18, 1992. During the period of cooperation, Azerbaijan attracted totally $577.3 million worth IMF loans to implement six different programs on cooperation under the economic reforms. The cooperation between the organization and the country was particularly intense between 1995 and 2005. During these years, Azerbaijan often used the consulting and financial assistance of the IMF to support the government's economic programs.
The IMF office was opened in Baku in 1992. Despite its staff having been reduced since 2009, it has remained an important partner of the Azerbaijani government. It is noteworthy that the cooperation between Azerbaijan and IMF played an important role in the period of global economic and financial crisis.