The Central Bank of Azerbaijan (CBA) has extended the validity period of decisions and recommendations on measures to support the country's financial sector in connection with the continuation of measures to support businesses affected by the COVID-19 pandemic until April 1, 2021.
These measures included: the relation of capital requirements and risk weights on mortgage loans; a moratorium on late fees and interest rate penalties; guarantees on insurance premiums and suspension of inspections of credit institutions.
Recall that in April 2020, the Cabinet of Ministers presented an Action Plan for the allocation of state funds from the budget. The plan provides for the financing of individual sites in order to reduce damage from pandemics and support economic growth and entrepreneurship. According to official data provided by the Ministry of Finance of the Republic of Azerbaijan paid 35 million manat ($ 20.58 million) Entrepreneurship Development Fund for the purpose of providing state guarantees for bank loans and subsidized interest rates.
In order to improve the flow of financial resources to the real sector, the Central Bank of the Republic of Azerbaijan has signed a $ 200 million swap agreement with the European Bank for Reconstruction and Development (EBRD). This swap made it possible for EBRD to provide domestic currency credit support to local companies facing the double challenge of the coronavirus outbreak and the global oil market shock.