Central Bank of Azerbaijan, EBRD sign agreement

BAKU, Azerbaijan, Sept. 17 By Zeyni Jafarov - Trend: The Central Bank of Azerbaijan (CBA) and the European Bank for Reconstruction and Development (EBRD) have signed a framework agreement on conducting swap operations for lending to SMEs in Azerbaijan in national currency during 2020, the CBA told Trend. According to CBA, within a country strategy for 2019-2024, which regulates cooperation between the EBRD and Azerbaijan, directions of cooperation between the EBRD and the CBA are envisaged. Along with this, an agreement of intent was signed between the CBA and the EBRD to support small and medium-sized enterprises (SMEs) in the country, develop local capital markets, provide additional incentives to reduce interest rates, and cooperate in increasing interest in the foreign exchange market. “Following the agreement, it is planned to conclude a swap agreement with the EBRD in the amount of up to $200 million, as a result of which the funds attracted by the EBRD will be transferred to local companies, especially the relatively small companies facing temporary difficulties. Swap transactions are planned to be carried out not only during the COVID-19 pandemic but also in subsequent periods,” the CBA noted. Azerbaijan has been closely cooperating with the EBRD since 1992, and this cooperation is characterized by useful activities in the field of active support for reforms in the country's economic development. --- Follow the author on Twitter: @jafarov_zeyni