12:46 - 31.07.2024

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July 31, Fineko/abc.az. The increase in interest rates on some loans in Azerbaijan is not linked with increase in the mandatory reserve rates.

ABC.AZ reports that the statement was made at a press conference by CBA chairman Taleh Kazimov,

He added that impact of the norms of CBA mandatory reserves on interest rates is not noted.

Kazimov says that the main reason for this is increase in liquidity in government accounts amid budget surplus.

"This has had downward impact on liquidity. For this reason, we’ve reduced our sterilization operations in order to balance the market. In the coming months, we also don’t expect impact of mandatory reserve norms on interest rates. On the contrary, we think liquidity will increase in 3-4 quarters as budget expenditures are fulfilled. There is a possibility that we will increase sterilization operations again. The average interest rate on new loans given to individuals and legal entities in December 2023 was 15.3%, and in June this year – 15%," the chairman added.

By Elmir Murad