Black Sea Trade and Development Bank (BSTDB) prepares to the emission of bonds in national currency in Azerbaijan, said the president of BSTDB Dmitry Pankin in his interview to the Izvestiya.iz portal, ONA reports.
According to him, creditization in national currency is the result of a financial crisis occurred in 2007-2008. Values of national currencies of emerging economies had dramatically dropped in that period. “Entrepreneurs understood that it is rather risky to take credits in foreign, but get profit in national currency. Therefore, implementing the creditization in national currency is not related to the refusal to use dollars as a result of the possible suspension of accounts due to US sanctions, but it is the proper management of liquidity."
Pankin added that BSTDB issues bonds in national currency in a particular country and places them with the help of national banks and local credit organizations. Funds received from placement of mentioned securities in national currency is used for lending to small and medium-sized businesses through large local projects or through banks within a specific program.
“The particular scheme has already been used in Georgia, Romania and Armenia. Currently we are preparing to issue bonds in local currency in Azerbaijan", Pankin noted.
Note that BSTDB was created by the founder and member countries of the Black Sea Economic Cooperation Organization- Azerbaijan, Albania, Bulgaria, Georgia, Moldova, Romania, Russia, Turkey, Greece, Ukraine and Armenia in 1999.