The Central Bank of the Republic of Azerbaijan has released a “Strategic Framework on the Microfinance Model”, setting out planned initiatives to increase the microfinance sector’s role in financing self-employed people and micro, small and medium-sized business entities, and in supporting economic growth. The framework prioritises strengthening the legal and regulatory basis for microfinance, introducing the concept of microcredit into legislation, supporting the institutional development of non-bank credit organisations and diversification of their funding sources, and reinforcing risk-sharing mechanisms. It also includes priorities to improve the identification system for the self-employed population and family peasant farms.
Central Bank of the Republic of Azerbaijan 2025-05-02
Central Bank of the Republic of Azerbaijan publishes strategic framework to expand the microfinance model
The Central Bank of the Republic of Azerbaijan has unveiled a "Strategic Framework on the Microfinance Model" to enhance the sector's role in financing self-employed individuals and micro, small, and medium-sized enterprises. Key initiatives include strengthening legal and regulatory foundations, introducing microcredit legislation, and supporting non-bank credit organisations. The framework also aims to improve identification systems for self-employed and family peasant farms.