Azerbaijan Raises Bar On Charter Capital Requirements For Non-Banking Credit Bodies
Date
11/26/2024 5:11:33 AM
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, November 26. The threshold of
financial fortitude for non-banking credit organizations (NBCOs),
those commercial entities woven into the fabric of Azerbaijan's
economic tapestry, has been elevated, Trend reports.
The requirement was raised from 300,000 manat ($176,470) to one
million manat ($590,000) following a new decree signed by Governor
of the Central bank of Azerbaijan (CBA) Taleh Kazimov in connection
with "Rules for prudential regulation of NBCO activities" approved
by the CBA Board.
According to the decree, the minimum capital for an NBCO set up
as a non-commercial legal entity was also determined in the amount
of 100,000 manat ($59,000).
Meanwhile, the decree prescribed to determine the structure of
the capital in accordance with Article 1.0.7 of the law and include
only cash-paid financial instruments in the capital.
When calculating the capital, the following deductions were
prescribed to be made from it:
- the net value of intangible assets (taking into account
depreciation);
- the amount of deferred tax assets as defined by International
Financial Reporting Standards (IFRS);
- investments in the capital of subsidiaries and other legal
entities;
- reserves created for satisfactory assets in the calculation of
equity are not deducted from the capital.
The CBA Financial Markets Legal Support Department has been
tasked to ensure the submission of this decree to the Ministry of
Justice of Azerbaijan within three days for inclusion in the State
Register of Legal Acts of Azerbaijan.
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