330x110
 

Vusal Gasimli: State support program saves banking sector

03.04.2020,16:07


April 3, Fineko/abc.az. Subsidizing and guaranteeing of business loans by the State eliminates the traditional arguments of commercial banks about risks.

ABC.AZ reports that the statement by Vusal Gasimli, the executive director of the Center for Analysis of Economic Reforms & Communications.

According to Gasimli, the state support program also saves the banking sector.

Gasimli pointed out that the banking sector should evaluate the assistance provided and participate more actively in financing the private sector: "The stimulating effect of budget and monetary policy on the economy is short-term. Stimulation of the demand for a short period of time is easy, but the main thing is to achieve a steady increase in supply. To continue the impact of the support program in the medium-term prospect, it is necessary to continue working towards institutional reforms, reforms to improve the business environment, human capital development and wider access to foreign markets. The process of replacing an economic model fueled by public investment with a model based on productivity and a favorable business environment should be accelerated even further."