Nazim Mamedov: "A third part of entrepreneurs in Azerbaijan need credit resources"

The National Bank again undertook measures to raise the liquidness of the banking sector of the country, reducing the discount rate from previously established level of 12% down to 10%. In this connection, Day.Az appealed for comments to Nazim Mamedov, deputy of Milli Medjlis and member of the permanent parliamentary commission.

He said the National Bank reduced the discount rate and at the same time corrected the "cap and floor" applied during operations on the open market. The upper limit was reduced from 17% to 15% and the lower one from 3 to 1%. At the same time earlier the National Bank reduced the discount rate from annual 15% to 12% and the cap and floor from 20 to 17% under the decision of October 14 of 2008.

"Nevertheless, as I have stressed earlier I consider it necessary to reduce it again down to 7%, to the level of crediting interest rate, applied by the National Fund of Assistance to Entrepreneurship. The real demands of the national economy for credit means exceed the volumes of factual crediting, conducted by commercial banks of the country", said he.

According to the deputy if the national economy requires additional financial reserves, the National Bank must assist to allocation of the necessary volume of means.

"It can be learned from the commercial banks by means of simple polls about how much of additional reserves they need to meet the demands of the local business. Surveys show that about a third part of entrepreneurs in the country need credit reserves", concluded Mamedov.

/Day.Az/