Azerbaijan news

Banker departure – 24 hours


Milli Assembly Elman Rustamov’s Center Bankfrom the membership of the Board of Directors (MB) free voted to be made. The chief banker, who has held this position since 1995, finally President Of Ilham Aliyev parliamentresigned on the basis of a letter sent to him. E.Rustamov was reappointed to the post of chairman of the Central Bank 2 years ago, snowAlthough he remained in office for three years, the country’s leadership fired him free considered it expedient to do so.

His post is based on the President’s presentation Milli Central by Parliament Bankappointed to the board of directors Taleh Kazimov is expected to be arrested. Kazimov, 39, had previously written for PASHA Bank”Chairman of the Board of the OJSC, Chief executionheld the position of director.

What is the secret of Rustamov’s early dismissal? At present, oil is a strategic export product of Azerbaijan on the world market and gasThe price is twice higher than budgeted. The country’s macroeconomic indicators are stable, and there is no crisis in the banking and financial system.

What are the government’s plans for the future? and Could Rustamov’s resignation be related to these new goals?

Economist Rovshan Agayev told that, The dismissal of the chief banker may be due to personal reasons: “It simply came to our notice then according to, recently took the initiative to resign. But I am not sure that this departure is connected with the possibility of a new stage of economic reforms in the country. Any institution in the country, including the Central Bank political operates within the framework set by the system. That frame and There were restrictions for the old chairman, and it will be the same for the new one. “

The economist emphasizes that, Like Azerbaijan political In countries where conditions, the whole economy political is subject to the interests of the system: “The existence of a political systemflour and Whatever the needs of sustainability, economic institutions do it snowwhispers. She according to I don’t have any serious expectations. “

Akram Hasanov, a banking expert and lawyer, said that, Pursuant to Article 25 of the Law on the Central Bank of the Republic of Azerbaijan, members of the Board of the Central Bank shall be dismissed ahead of time only in specific cases. free It can be done. According to him according toone of these cases is the submission of a resignation letter. “As far as I understand, Elman Rustamov, who has three years left in his term, was dismissed, at least formally, on his own resignation.”– the expert emphasized.

A. Hasanov says that, 3 other members of the Board of the Central Bank – Alim Guliyev, Vadim Khubanov and Aftandil Babayev’s term expires on March 7: “They were appointed on March 7, 2017 for 5 years. Taleh Unlike Kazimov, they were not appointed members of the Board for the next term. Most likely, the composition of the Board will change completely based on the opinion of the new chairman. That’s it that, This issue must be resolved soon. I think so that, The new staff will include one of the existing employees of the Central Bank. Because there is a need for personnel who know the job from the inside. “

A. Hasanov notes that, The existence of E. Rustamov as the chairman of the Central Bank is due to the bad management of the banking system and numerous the law In addition to the continuation of violations, he warned of the threat of devaluation: “He should not have been reappointed two years ago, but the pandemic has disrupted plans. I said then that, will not remain in office until the end of his current 5-year term. That’s what happened “. The expert notes that, Against the background of current geopolitical tensions, oil prices are unlikely to fall and There is no threat to the manat: “From this point of view, the time has come to change the chairman of the Central Bank. I hope that that, The new chairman will be a useful person for the development of our banking system. At the same time, the period of Rustamov the law I hope that the violations will be investigated and the perpetrators will be brought to justice. Standing at the head of everything the lawis a hole. This is exactly what we expect from the new leader. “

Economist Samir Aliyev says that, Elman Rustamov, as the head of the Central Bank, has always applied a conservative approach to the banking sector, limited access of banks to foreign financial markets, and made it impossible for foreign banks to enter the country. “During his presidency, the population went to the banks and national managed to restore confidence in the currency. At least we remember the 90s well. The level of dollarization in the country has fallen. Inflation, including import inflation, has been minimized. Sorry that, in the banking sector credit The higher the interest rates, the smaller and of medium business creditProblems such as poor access to credit, limited services provided by banks, and violations of the rights of bank customers have not been resolved. Like this slingshot, the situation, which arose against the background of falling oil prices, showed devaluation that, the resilience of the banking sector is weak. In a short time, people to the banks and manat began to lose confidence “– said the expert.

According to the economist according toContrary to public opinion, one of the main opponents of devaluation in the country was E. Rustamov: “It’s not a coincidence that, Devaluation in 2015 snow2/3 of the Central Bank’s foreign exchange reserves to buy glass victim did not hesitate to give. It is a clear issue that, In countries like Azerbaijan, the Central Bank cannot decide on devaluation. 20In 09 and 2020While there was a risk of devaluation of the manat in the 1930s, the Central Bank maintained the exchange rate of the manat. In 2015, it was not possible. After the departure of Elman Rustamov, the probability of devaluation will increase. For a long time, he was able to convince the political authorities of the importance of keeping the manat stable.

S.Aliyev says that, The main shortcoming of Rustamov’s activity was the lack of liberal banking system and currency regime. “But the reason for this is to be found in the structure of the country’s economy. Because liberalization of the banking sector is impossible in countries where the general economy is not liberal. “– he stressed.

The economist will be the new head of the Central Bank Taleh He also shared his opinion about Kazimov: “Although basic education is technical, it later specializes in finance. As I do not know, I do not want to comment on the activities of the new chairman in advance. I read in the press that, is against devaluation. This idea does not matter at the moment. Because the statement was made by the head of the bank and no bank is interested in devaluation. The main issue is after that. Will he be anti-devaluation again after becoming the head of the Central Bank? Time will tell. It is visible that, The government intends to revive the banking sector. We will see what this revival is under the new leader “.


Azerbaijan news

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