IMF concludes consideration of FSSA for Azerbaijan

By Aynur Karimova - AzerNews 

The Executive Board of the International Monetary Fund has concluded the consideration of the Financial Sector Stability Assessment for Azerbaijan.

The consideration of the FSSA was conducted on July 17, the IMF reported on July 21.

The Financial Sector Assessment Program, established in 1999, is a comprehensive and in-depth assessment of a country’s financial sector. The key findings of an FSAP are summarized in a report called the FSSA.

As part of the assessment, conducted in early March 2015, Azerbaijan was offered a number of recommendations for further improving financial markets and developing legislative and regulatory frameworks.

The recommendations concern measures against the dollarization of the economy and for the Azerbaijan Deposit Insurance Fund to upgrade its activities, etc.

According to the conclusions of the IMF, the insurance sector of Azerbaijan is stable, well capitalized and enjoys a high profitability.

Currently, the WB is discussing the possibilities of improving consumer protection and ways to support the development of these mechanisms with the Ministry of Finance, Central Bank, and State Securities Committee.

This was the second assessment of FSAP for Azerbaijan. The first IMF estimate was conducted jointly with the World Bank as part of the program in 2003. Following the first evaluation, Azerbaijan adopted the laws "On Banks" and "The National Bank," and a set of regulations aimed at removing the critical defects in the financial sector outlined in the first FSAP.

Azerbaijan joined the IMF in September 1992. Cooperation between two was particularly intensified from 1995 to 2005. During these years, Azerbaijan often heeded the advice and financial assistance of the IMF to support the government's economic programs.

The IMF office was opened in Baku in 1992. Despite a reduction in staff in 1999, it remains an important partner of the Azerbaijani government.