Azerbaijani national postal operator receives limited banking license

"Recently, Azerpocht has achieved great success and created an infrastructure," the minister said. "In 2010, the company will begin to offer full services, which will provide the basis for its profitability by 2012."

At present the postal operator is undergoing reorganization and preparing to offer financial services, first deputy chairman of the Central Bank, Alim Guliyev said.

"In particular, the relevant measures are being taken to apply internal information system, conduct structural reforms, dismiss redundant personnel and create a system of supervising over risk," said the deputy.

Azerpocht has been granted a license as a non-banking credit organization.


"At this stage, the postal operator will not accept deposits, it can happen in subsequent years, so now it is granted a license for limited banking activity," Guliyev said.

Under the bill on "Non-bank lending activity", which is being debated in Parliament in the second reading, these financial institutions, as well as banks, will be granted a perpetual license.

In 2010, post offices will undertake limited banking operations, including cash transactions, money transfers and the opening of client accounts. At the next stage, they will have an opportunity to attract deposits, and in the long term, post offices will issue loans.

Functions of Azerpocht extended under amendments to the Law on "Postal Communication". Since 2005, the country has been conducted a project, supported by the World Bank, on "Development of financial services" in post offices. The project is scheduled to be completed by late 2009, and in 2010, new services will be provided, but the transition to beneficial use of new services will take place within two or three years.

Azerpocht has already begun to connect their offices to a unified system of utility bills, created at the Central Bank. At present, around 100 postal offices have already joined it.

Currently, there are 1,536 post offices in Azerbaijan and 337 of them provide services for the population in cities, district centers and towns, and 1199 - in rural areas.

/Trend Capital/