CBA approves amendments to laws on issuing loan to banks
Governor of the Central Bank of the Republic of Azerbaijan Taleh Kazimov approved the amendments to Laws on issuing a loan to banks by the Central Bank of Azerbaijan (CBA), Trend reports citing CBA.
Under the new laws, the conditions for refinancing loans issued by the CBA have been changed.
According to the new law, from now on, refinancing loans issued for a period of no more than 180 days will be issued through direct or indirect auctions in order to implement the monetary policy of the Central Bank.
In addition, the loan will be refused if the collateral for the loans issued is not issued within three working days from the date of the auction.
Banks whose activities are not restricted or prohibited within the framework of control measures implemented in accordance with the Law on Banks of Azerbaijan and who do not have overdue credit obligations to the CBA or banks will be able to participate in the auctions.
Loans issued for a period of more than 360 days will be considered refinancing loans that have already been issued outside the auction. By the decision of the Board of the Central Bank, loans can be provided for refinancing outside the auction for a period of no more than 360 days secured. Other conditions for granting these loans are determined by the decision of the CBA Board.
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