CBA: Azerbaijani businesses prefer bank financing

Organizations in Azerbaijan prefer bank financing over capital market instruments, Rustam Tahirov, Director of the Financial Stability and Sustainable Development Department of the CBA, said during the 2nd Azerbaijan Halal Business Forum (AZHAB) in Baku.

Report quotes him as saying this is influenced by a number of factors: "The measures being taken to revive the capital market in Azerbaijan will ultimately bear fruit in the form of the development of alternative financial instruments, such as sukuk and ‘green bonds." We believe that the capital market will reach a new level."

The CBA representative added that amendments to various legislative acts have currently been prepared and sent to banks for feedback: "According to our schedule, we plan to complete the development of these amendments by the end of this year and submit them for coordination and intergovernmental approval. We hope that next year we will see a legislative framework and banks offering Islamic banking services."