Five key areas have been identified for the development of Azerbaijan's microfinance sector, Jalal Aliyev, Chairman of the Board of the Azerbaijan Microfinance Association (AMFA), said at the 12th Investment and Sustainable Development in Microfinance Conference in Baku, Report informs.
According to Aliyev, the preparation and approval of a strategic framework document on the microfinance model by the Central Bank of Azerbaijan (CBA) is an important step in determining the sector's future development priorities.
"The cooperation of state institutions, non-bank credit organizations, investors and development partners is of particular importance for the implementation of this framework. I would like to briefly highlight five areas that we consider important for the implementation of the strategic framework. The first area is increasing financial inclusion and supporting entrepreneurship. The second is responsible lending and institutional sustainability. The third is ensuring access to long-term financial resources and investments. The fourth is secure digitalization and the creation of reliable data infrastructure. The fifth is taking into account and measuring social and environmental impacts. When evaluating results, we should also pay attention to the growth of supported businesses and the financial sustainability of clients. Financial products supporting water conservation, the use of alternative energy sources, energy efficiency and climate adaptation are promising areas," the chairman noted.