ADB: Project finance loans to positively impact banks in Azerbaijan

The allocation of project finance loans in Azerbaijan will have a positive impact on the work of local banks, Asian Development Bank (ADB) investment specialist Sanan Shabanov told Report.

He was commenting on the approval by the Central Bank of Azerbaijan on October 24 this year of the “Procedure for prudential regulation of project financing loans.”

This procedure was developed in accordance with the law on banks and taking into account the standards of the Basel Committee on Banking Supervision (BCBS) and determines the framework for regulating project financing loans in banks operating in the country and local branches of foreign banks.

“The introduction of project financing in Azerbaijan is a very good thing. It involves the use of 75-100% of the income from projects to repay the loan. I am glad that the CBA has approved this procedure,” the ADB representative said.