Central Bank’s legal status to be changed
Economy03 March 2016, 14:51 708
The draft law on "Amendments to the Law on Central Bank of Azerbaijan” has been discussed in the joint meeting of the parliament’s Committees of Legal Policy and State-Building Committee, Economic Policy, Industry and Entrepreneurship.
According to the legal status of the Central Bank of Azerbaijan will be changed from state body to a public legal entity.
One of the amendments is cancellation of the article #5.0.7 of the Law on Central Bank of Azerbaijan.
Moreover, the words "in monetary, foreign currency and banking areas” in the article #9.3 (.National Bank may participate in the capital and activity of international organizations for the purpose of cooperation in monetary, foreign currency and banking areas.) are replaced with the words "in monetary and currency policy areas”.
At the same time, the articles $22.0.9-22.0.12 are withdrawn from the law.
If the amendments are adopted, the Central Bank will lose its powers of providing stable operation of banking system, licensing on banking activity in order to protect interests of creditors and depositors, regulation and control.
At the same time, the article #49 is offered to be edited. So, the Central Bank could give loans, including subordinated loans to banks in accordance with its conditions. After edition, in case of shortly breach of solvency and lack of liquidity, the Financial Market Control Chamber may appeal to the Central Bank for giving loans for not over 6 months. Within the two days after appeal, the Central Bank must pass a decision whether it gives a loan or not.
The draft law was recommended to the plenary meeting of the parliament.
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