NBA reduces refinancing rate to annual 12% to ensure financial stability of banking system

Moreover, by NBA decision from November 3 of 2008, the reserve norms on banking liabilities, both in national and foreign currencies, will be reduced from 12% to 9% and on external liabilities from 5% to 0%.

According to the statement, the National Bank of Azerbaijan in cooperation with the government are taking preventive measures for the stable provision of financial stability of the banking system and neutralization of external risk factor. These measures envision high flexibility of liquidness tools and complex prudential regulation of banking system flexibility in the face of the external economic crisis.

"Strategic monetary reserves have topped $17 bln through a year, the overall external assets prevail over the liability by $9 bln. In the result, this strengthened the creditor position of Azerbaijan in the global economy.

The strategic monetary reserves of Azerbaijan ensure its international payment capacity, which means that these reserves are 1.7 times higher than the overall external debt of the country", says the statement.

/Day.Az/