Azernews.Az

One of the major priorities of social and economic development in Azerbaijan for 2013-2016 is the development of a stable banking system and increasing the level of confidence on the part of economic agents.

This has been stated in the draft of the state budget of Azerbaijan for 2013 and the next three years, submitted to the Parliament.

'It is planned to strengthen the role of the banking system by ensuring the diversification of the economy through the development of the non-oil sector, acceleration of the development of Azerbaijan's regions and reducing poverty and increasing entrepreneurship in order to achieve these goals', the draft said.

Moreover, the banking sector is expected to increase investment and credit opportunities which will create a legal competition in the banking market. More attention will also be paid to the quality of the bank's assets and risk prevention management.

As of September 1, banks issued loans worth 11.157.8 billion manat, which is 8.8 per cent more compared to the beginning of the year and by 18.7 per cent compared to the same period in 2011.

Loans and borrowings worth 731.7 million (6.56 per cent) of the total portfolio were overdue compared to 633.8 million manat as of January 2012.

According to the CBA board's decision dated July 25, the minimum total capital of existing banks and authorised capital of newly established banks increased from the current 10 million manat ($12.7 million) to 50 million manat ($63.7 million). The new requirement for the capitalisation of the existing banks will come into force from January 1, 2014.