Regulatory Alerts2023-12-27
Regulations on the Issuance of Loans to Banks by the Central Bank of Azerbaijan
The Central Bank of the Republic of Azerbaijan issued Resolution No. 25/1 to establish standardized procedures for granting refinancing, lender of last resort, and special purpose loans to domestic commercial banks. The regulation mandates that auction-based refinancing operate with maturities up to 180 days through direct or indirect bidding, while non-auction refinancing and lender of last resort facilities extend up to 360 days or six months. All loan categories require specific collateral backing, including government guarantees, approved securities, foreign currency deposits, real estate, and gold bars, with pledged-to-liability ratios strictly set between 100% and 150%.
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