During his speech in the Milli Majlis (National Assembly), Prime Minister of Azerbaijan Artur Rasizadeh touched on the problems in the economy and banking sector of the country, linking them with the criminal activities of the former leadership of the International Bank.
'Difficulties in the financial and banking sector of Azerbaijan in 2016 give grounds to characterise it as a difficult year. The unsatisfactory work of a number of banks, the criminal activities of the former leadership of a systemically important bank, the International Bank of Azerbaijan, further aggravated the situation,' said the prime minister as quoted by Trend Agency.
Taking into account the current situation, he said, in order to improve the state management in the financial sector and ensure macroeconomic stability, the Financial Markets Supervision Chamber was created.
'Having studied the existing problems, the Financial Stability Board prepared an action plan, the relevant state bodies have already begun to implement it,' Mr Rasizadeh said.
The PM also touched upon the situation on the world oil market. 'As a result of a sharp decline in world prices for hydrocarbons, Azerbaijan's revenues from their exports have significantly decreased,' said the prime minister.
Recall, the former head of the International Bank Jahangir Hajiyev was arrested and sentenced by court to 15 years on charges of misappropriation of the bank's funds. On his behalf, the bank issued billions of loans to familiar businessmen. Later, this money was appropriated and exported abroad, which caused a serious blow to the Azerbaijani economy.