Knowledge (XXG)

Finance system in Azerbaijan

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The main financial instruments of the accounting segment in Azerbaijan are short-term liabilities of the state, recent notes of the National Bank of Azerbaijan and their issuance and placement. The financial market of Azerbaijan provides a redistribution of short-term loans and cash flows in the form
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in 2003, operates to attract foreign investments to non-oil sectors and promote the export of non-oil products. Foundation services to foreign companies which are interested in collecting information about the investment climate of Azerbaijan and interested in investing based on the principle of “one
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While applying soft monetary policy, the Central Bank decreases interest rates on its loans, provides to banks with more loans and creates a downward trend in the national currency. Soft monetary policy is a policy aimed at limiting inflation. While implementing hard monetary policy, the Central Bank
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Government implements “one-stop shop” policy in order to attract investments into the economy of Azerbaijan. The President of Azerbaijan signed an order "On measures to ensure the organization of business entities” based on principle of “One-stop shop” on October 25, 2007. The implementation of this
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Historically Customs policy was the primary form of state regulation of foreign trade. The essence of the customs policy is to reflect the customs tariff legislation, the establishment of relations with various international customs associations, the establishment of free customs and trade zones. As
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The President signed a Decree "on the establishment of the National Bank of Azerbaijan", formed on the basis of the State Bank, Industrial-building and Agrarian-industrial Bank of the former Soviet Union" on February 11, 1992. The law "on the structure of the National Bank of Azerbaijan" was adopted
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Attracting investment in ensuring the sustainable and balanced development of Azerbaijan in the long-term plays a special role. Further improvement of the investment climate in the country is one of the main tasks to ensure the required volume and quality of investments. The following measures are
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Monetary policy is also being implemented by Central Bank, along with the financial policy implemented by various financial authorities for ensuring financial stability. The main purpose of monetary policy of Azerbaijan is to provide financial stability, sustainable employment and economic growth
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Financial policy of Azerbaijan is aimed at the implementation of the state program of economic development of the Republic. The development of the Azerbaijani financial system and the whole market infrastructure depends on the activities of commercial banks, insurance company and other financial
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Financial Market Supervisory Authority (FIMSA) was formed on February 3, 2016, by Decree №760 of Azerbaijani President, for the purpose of licensing, regulating and controlling of securities market, investment funds, insurance, credit organizations (bank, non-bank credit organization and postal
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The banking system of Azerbaijan consists of the Central Bank of Azerbaijan and credit institutions. The country has a two-stage developed banking system based on market principles (the first stage is the National Bank of the Azerbaijan, the second — commercial and other non-Bank credit
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According to the Statute approved by the Decree of the President of the Republic, the Ministry of Finance of the Republic of Azerbaijan is a central executive body that carries out financial policy and regulates state financial management. The main duties of the Finance Ministry are:
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branch was opened and the whole system was managed by the Central Department. On 18 October 1991, as a result of the restoration of state independence, the necessary legal framework was established for the creation of a unified banking system of the Republic of
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The development of the economy depends on the tax policy implemented in the country. Tax policy is implemented within the framework of economic policy directed to development of market economy in Azerbaijan and integration of it into the world economy.
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Open market operations are carried out by Central Bank in order to regulate the cash flows in circulation and to influence the interest rates in the interbank money market for realizing the monetary targets. Open market operations are as follows:
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consists of government policy and arrangements for borrowing and lending and the transfer of assets. The system is composed of banks, insurance companies, other financial institutions, pension system, financial markets and payment systems.
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operator) and payment systems, legalization (laundering) of monetary means or other property acquired by the person as a result of committing a crime, improvement of the control system in the field of prevention of terrorism financing.
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The main objective of the monetary policy is the elimination of the banking crisis, restoration of trust to the banking system and stimulation of the population's savings. At the same time, monetary policy has the following objectives:
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The National Bank annually reports the main directions of the monetary policy of the state for the coming year to the President of Azerbaijan no later than October 1 and declares to the community through mass media until December 31.
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The main purpose of the activity of Central Bank is to ensure price stability in the country within its competence. In addition, stability and development of the banking and payment systems are also part of the goals of central bank.
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The purpose of financial policy is to ensure the stable development of the state economy by using of financial relations and financial potential of the country. The main objectives of Financial policy in Azerbaijan are consist of:
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Monetary policy instruments implemented by the Central Bank are also reflected in Article 29 of the Law of the Republic of Azerbaijan "On the Central Bank of the Republic of Azerbaijan". Key instruments of monetary policy are:
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According to the Constitution of the Republic of Azerbaijan and the Law of the Republic of Azerbaijan "On the Budget System", classification of various budgets has been provided in country, which creates the budget system.
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Article 2.1 of the Law of the Republic of Azerbaijan on Banks (adopted amendments and additions on March 4, 2005, March 6, 2007, April 17, 2007, October 19, 2007, October 2, 2008, May 26, 2009 and June 30, 2009) states:
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stop shop”. The organization also supports local companies trying to enter the foreign markets. Memorandums on “Cooperation and partnership” were signed between AzPROMO and more than 80 organizations from 37 countries.
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According to Article 1078 of Chapter 15 of the Civil Code of the Republic of Azerbaijan, the securities market participants have the following types of activities in the securities market of the Republic of Azerbaijan:
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The budget policy of Azerbaijan is defined by the Constitution of Azerbaijan, the Budget code of Azerbaijan, and a set of laws establishing the functions of individual authorities in the budget process and legislation.
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system has begun since January 1, 2008. The number of procedures to start work was reduced from 15 to 1 and the duration of the procedure was reduced from 30 days to 3 as a result of the introduction of this system.
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Organizes the work of the state tax authorities related to completely transfer to the state budget in time, correct calculation of state taxes and other incomes assigned to them in accordance with tax legislation;
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The Baku Stock Exchange is a commercial organization created as a closed joint-stock company. The BSE was established in 2000, and its main purpose was to form an organized stock market in the country.
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In 2004, the government adopted two laws on “the Law of the Republic of Azerbaijan on the Central Bank of the Republic of Azerbaijan” and on “the Law of the Republic of Azerbaijan on Banks”.
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by decree of March 7, 1919. On may 31 of next year, the name of the Bank was changed Into "Azerbaijan people's Bank". In 1923, following the establishment of the State Bank of the
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In 2009, the name of National Bank of Azerbaijan was changed into the Central Bank of Azerbaijan as a result of a Referendum held for making some amendments and additions to the
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inter-bank deposit for regulating of the balance of inter-bank money market, for fulfilling the requirements of supervisory authorities, for carrying out active operations.
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customs policy is an integral part of the economic and foreign trade policy of state, it depends on the goals and objectives of overall economic strategy of the government.
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According to the 2015 report, 45 banks functioned in Azerbaijan. Some of them were closed. At present (2018), 30 banks operate in Azerbaijan, two of which are state-owned (
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Ensures review of complaints and compliments, takes measures to eliminate the reason and conditions that caused the violation of taxpayers' rights and legitimate interests
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raises interest rates on its loans, reducing the money in circulation by selling securities, creates an upward trend in the national currency, restricts credit to banks.
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The decree № 57 on "The law of the Azerbaijan Republic about protection of foreign investments" confirmed by the President of Azerbaijan, dated 15 January 1992.
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increasing the contribution to the development of modern institutional infrastructure that ensures the efficient transformation of deposits into investments;
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The budget touches the interests of the country's population, being an integral part of the public administration system, directly serves them.
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The decree № 952 on "The law of Azerbaijan Republic on investment activity» confirmed by the President of Azerbaijan dated January 13, 1995.
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improvement of the system of informing the investors about the enterprises for the purpose of selection and analysis of investment objects;
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The main directions of the monetary policy are regulated by Article 28 of the Law of the Republic of Azerbaijan "On National Bank":
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The budget system in the Republic of Azerbaijan consists of the state budget of the Republic of Azerbaijan, the budget of the
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Improvement of the budget system, budget-tax forecasting, accounting and reporting rules of the financing mechanism;
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Ensuring financial stability and implementing the necessary measures for the development of the financial market;
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A number of state programs have been adopted for the development of tax policy in the Republic of Azerbaijan:
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creating a more favorable competitive environment for all investors regardless of the form of ownership;
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Creating a simple tax system for taxpayers that stimulates entrepreneurship and investment activity
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determination of the share of the Federal budget from the total amount of the consolidated budget;
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more effective regulation of customs control and commodity circulation in the customs territory,
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Creation of favorable conditions for taxpayers' activity and maximum protection of their rights;
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Preparation of proposals on financial, budget and tax policy and implementation of this policy;
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organization, regulation and stimulation of economic and social processes by financial methods;
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Coordinate the activities of tax administration governing bodies with other state bodies;
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determination of the amounts of expenses distributed between budgets of different levels;
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Provides the establishment of the automated information system of state tax authorities;
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increasing the role of the state in order to ensure a stable normative-legal regime;
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Conception for the development of services provided by tax authorities to taxpayers
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Establishment of the normative-legal basis of tax system, formation of tax culture;
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providing conditions for the formation of the maximum possible financial resources;
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The Azerbaijan Export and Investment Promotion Foundation (AzPROMO) formed by the
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further improvement of the regulatory and legal framework for investment activity;
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Participates in the preparation of the forecast of the state budget on income tax;
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Filling the state's foreign exchange reserves and preventing capital flows abroad.
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The tax policy of the Azerbaijan is carry out based on the following principles:
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Strategic Plan for Improving Tax Legislation and Administration for 2009-2012
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The methods of implementing the monetary policy of Azerbaijan are consist of:
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Investment activity in the Republic of Azerbaijan is regulated by two laws:
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State Program on Improving Tax Administration in the Republic of Azerbaijan
663:"Студопедия — Тема 5 Финансовая политика государства и финансовый механизм" 933:"STATE COMMITTEE FOR SECURITIES UNDER THE AUSPICES OF AZERBAIJAN REPUBLIC" 499:
Implementation of the tasks arising from the economic policy of the state,
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carrying out customs business in accordance with international standards.
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Participates in the project of legislative acts regulating tax relations;
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Plan of measures to improve the tax system in the Republic of Azerbaijan
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Improving control over compliance with mandatory regulations by banks;
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establishment of rational distribution and use of financial resources;
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determination of the structure of the expenditure part of the budget;
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determination of sources of formation of the state budget revenues;
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control over the expenditure of budget, non-budget, foreign loans.
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protecting personal property and improving corporate governance;
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Implementation of currency intervention and exchange rate policy.
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Conducting banking transactions with securities in a free market.
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Determination of interest rates on centralized credit operations.
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Purpose of customs policy of the Republic of Azerbaijan:
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Creates conditions for taxpayers to realize their rights.
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the order of the President of the Republic of Azerbaijan
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Strategic Plan for Tax System Development for 2013-2020
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Preparation and execution of the state budget project;
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Financial Market Supervisory Authority of Azerbaijan
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stimulating the development of the national economy,
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Providing centralized loans to credit institutions.
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determination of public debt management objectives;
302:Placement of short-term notes of the Central Bank. 1231:"Financial Market Supervisory Authority (FIMSA)" 962:"Instruments of monetary policy of Central Bank" 902:"The Law of the Republic of Azerbaijan on Banks" 800:"Banks of Azerbaijan leave difficulties behind?" 711:"The Law of the Republic of Azerbaijan on Banks" 567:Structure of the financial market of Azerbaijan 143:The budget policy solves the following tasks: 79:The Central Bank of the Republic of Azerbaijan 47:Financial forecasting and planning methodology 455:Prepares proposals on improvement tax policy; 8: 1017:"Azərbaycan Respublikası Vergilər Nazirliyi" 343:Maintaining tax burden at an optimal level; 279:activity on registering securities holders; 250:regulation of the national currency course; 41:Organizational forms of financial relations 1003:the official website of Ministry of Taxes 89:Azerbaijan state Bank was created by the 357: 654: 75:) and 28 are private commercial banks. 634:Financial Market Supervisory Authority 451:Main functions of the Taxes Ministry: 106:and consequently, the National Bank. 44:Creation and use of state foundations 7: 244:restructuring of the banking system; 1202:"BSE — Milestones in BSE's history" 440:the order of the Ministry of Taxes 426:the order of the Ministry of Taxes 412:the order of the Ministry of Taxes 398:the order of the Ministry of Taxes 232:Refinancing of credit institutions; 1041:"Investment climate in Azerbaijan" 493:protection of the internal market, 14: 1066:"İnvestment policy in Azerbaijan" 273:securities management activities; 214:Restriction of banking operations 1072:(in Azerbaijani). Archived from 582:Ministry of Finance (Azerbaijan) 73:International Bank of Azerbaijan 177:Nakhichevan Autonomous Republic 1124:investmentpolicyhub.unctad.org 622:is the main stock exchange of 110:on August 7 of the same year. 91:Azerbaijan Democratic Republic 1: 742:"List of banks in Azerbaijan" 512:undertaken for this purpose: 313:Soft and hard monetary policy 285:fund stock exchange activity. 18:Finance system in Azerbaijan 1292: 996:"Tax system of Azerbaijan" 979:"Tax system of Azerbaijan" 637: 611: 579: 118:Constitution of Azerbaijan 85:Central Bank of Azerbaijan 82: 842:"The history of the bank" 226:Defining interest rates; 229:The reserve requirement 171:determination of budget 223:open market operations 1276:Banking in Azerbaijan 1271:Economy of Azerbaijan 1266:Finance in Azerbaijan 308:Foreign exchange swap 290:Open market operation 38:Financial legislation 1070:www.privatization.az 282:clearing activities; 276:depository activity; 50:Financial management 1144:"AZPROMO | AzPromo" 1045:www.azerbaijans.com 620:Baku Stock Exchange 614:Baku Stock Exchange 608:Baku Stock Exchange 576:Ministry of Finance 560:Ministry of Economy 378:September 12, 2005 367:Activation period 364:Confirmation date 235:Deposit operations; 188:without inflation. 179:and local budgets. 1177:www.maliyye.gov.az 775:vestnikkavkaza.net 392:December 24, 2007 299:Deposit operations 1005:(in Azerbaijani). 984:(in Azerbaijani). 967:(in Azerbaijani). 937:www.azerbaijan.az 846:www.azerbaijan.az 507:İnvestment policy 447:Ministry of Taxes 444: 443: 406:November 3, 2008 258:Securities market 1283: 1250: 1249: 1247: 1246: 1237:. 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Archived from 715: 707: 701: 700: 698: 697: 683: 677: 676: 674: 673: 659: 420:January 6, 2011 358: 270:dealer activity; 267:broker activity; 29:Financial policy 1291: 1290: 1286: 1285: 1284: 1282: 1281: 1280: 1256: 1255: 1254: 1253: 1244: 1242: 1229: 1228: 1224: 1215: 1213: 1200: 1199: 1195: 1186: 1184: 1171: 1170: 1166: 1157: 1155: 1142: 1141: 1137: 1128: 1126: 1118: 1117: 1113: 1104: 1102: 1093: 1092: 1088: 1079: 1077: 1064: 1063: 1059: 1050: 1048: 1039: 1038: 1034: 1025: 1023: 1015: 1014: 1010: 998: 994: 993: 989: 981: 977: 976: 972: 964: 960: 959: 955: 946: 944: 931: 930: 926: 917: 915: 911: 904: 900: 899: 895: 886: 884: 880: 873: 869: 868: 864: 855: 853: 840: 839: 835: 827: 823: 822: 818: 809: 807: 798: 797: 793: 784: 782: 769: 768: 764: 755: 753: 740: 739: 735: 726: 724: 720: 713: 709: 708: 704: 695: 693: 685: 684: 680: 671: 669: 667:studopedia.info 661: 660: 656: 651: 642: 636: 616: 610: 584: 578: 569: 556: 547: 509: 480: 449: 434:March 19, 2013 353: 351:Reform Programs 324: 315: 305:REPO operations 292: 260: 185: 183:Monetary policy 130: 87: 81: 64:institutions). 57: 31: 12: 11: 5: 1289: 1287: 1279: 1278: 1273: 1268: 1258: 1257: 1252: 1251: 1222: 1193: 1164: 1135: 1111: 1099:www.e-qanun.az 1086: 1057: 1032: 1008: 987: 970: 953: 924: 893: 862: 833: 816: 791: 762: 733: 702: 678: 653: 652: 650: 647: 638:Main article: 635: 632: 612:Main article: 609: 606: 605: 604: 601: 598: 595: 592: 580:Main article: 577: 574: 568: 565: 555: 552: 546: 543: 533: 532: 529: 526: 523: 520: 517: 508: 505: 504: 503: 500: 497: 494: 491: 479: 478:Customs policy 476: 475: 474: 471: 468: 465: 462: 459: 456: 448: 445: 442: 441: 438: 435: 432: 428: 427: 424: 421: 418: 414: 413: 410: 407: 404: 400: 399: 396: 393: 390: 386: 385: 382: 379: 376: 372: 371: 368: 365: 362: 352: 349: 348: 347: 344: 341: 338: 335: 323: 320: 314: 311: 310: 309: 306: 303: 300: 291: 288: 287: 286: 283: 280: 277: 274: 271: 268: 259: 256: 255: 254: 251: 248: 245: 237: 236: 233: 230: 227: 224: 216: 215: 212: 209: 206: 203: 184: 181: 173: 172: 169: 166: 163: 160: 157: 154: 151: 148: 129: 126: 83:Main article: 80: 77: 69:Azer-Turk Bank 56: 55:Banking system 53: 52: 51: 48: 45: 42: 39: 30: 27: 25:institutions. 13: 10: 9: 6: 4: 3: 2: 1288: 1277: 1274: 1272: 1269: 1267: 1264: 1263: 1261: 1241:on 2018-10-03 1240: 1236: 1232: 1226: 1223: 1212:on 2016-07-27 1211: 1207: 1203: 1197: 1194: 1183:on 2018-03-27 1182: 1178: 1174: 1168: 1165: 1154:on 2017-10-21 1153: 1149: 1145: 1139: 1136: 1125: 1121: 1115: 1112: 1100: 1096: 1090: 1087: 1076:on 2016-07-31 1075: 1071: 1067: 1061: 1058: 1046: 1042: 1036: 1033: 1022: 1018: 1012: 1009: 1004: 997: 991: 988: 980: 974: 971: 963: 957: 954: 943:on 2009-12-12 942: 938: 934: 928: 925: 914:on 2018-03-31 910: 903: 897: 894: 883:on 2018-04-01 879: 872: 866: 863: 852:on 2009-12-12 851: 847: 843: 837: 834: 826: 820: 817: 805: 801: 795: 792: 781:on 2016-02-03 780: 776: 772: 766: 763: 752:on 2017-01-03 751: 747: 743: 737: 734: 723:on 2018-03-30 719: 712: 706: 703: 692: 688: 682: 679: 668: 664: 658: 655: 648: 646: 641: 633: 631: 627: 625: 621: 615: 607: 602: 599: 596: 593: 590: 589: 588: 583: 575: 573: 566: 564: 561: 553: 551: 545:One-stop shop 544: 542: 539: 536: 530: 527: 524: 521: 518: 515: 514: 513: 506: 501: 498: 495: 492: 489: 488: 487: 484: 477: 472: 469: 466: 463: 460: 457: 454: 453: 452: 446: 439: 436: 433: 430: 429: 425: 422: 419: 416: 415: 411: 408: 405: 402: 401: 397: 394: 391: 388: 387: 383: 380: 377: 374: 373: 370:Confirmed by 369: 366: 363: 360: 359: 356: 350: 345: 342: 339: 336: 333: 332: 331: 328: 321: 319: 312: 307: 304: 301: 298: 297: 296: 289: 284: 281: 278: 275: 272: 269: 266: 265: 264: 257: 252: 249: 246: 243: 242: 241: 234: 231: 228: 225: 222: 221: 220: 213: 210: 207: 204: 201: 200: 199: 196: 192: 189: 182: 180: 178: 170: 167: 164: 161: 158: 155: 152: 149: 146: 145: 144: 141: 137: 133: 128:Budget policy 127: 125: 121: 119: 114: 111: 107: 105: 100: 96: 92: 86: 78: 76: 74: 70: 65: 61: 54: 49: 46: 43: 40: 37: 36: 35: 28: 26: 22: 19: 1243:. 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Index

Azer-Turk Bank
International Bank of Azerbaijan
Central Bank of Azerbaijan
Azerbaijan Democratic Republic
USSR
Baku
Azerbaijan
Constitution of Azerbaijan
Nakhichevan Autonomous Republic
Ministry of Economy
Ministry of Finance (Azerbaijan)
Baku Stock Exchange
Baku Stock Exchange
Azerbaijan
Financial Market Supervisory Authority of Azerbaijan
"Студопедия — Тема 5 Финансовая политика государства и финансовый механизм"
"Финансовая политика - Финансы (Грязнова А.Г., 2012)"
"The Law of the Republic of Azerbaijan on Banks"
the original
"List of banks in Azerbaijan"
the original
"Depositors of closed Azerbaijani banks to receive compensation | Vestnik Kavkaza"
the original
"Banks of Azerbaijan leave difficulties behind?"
"COMPETITIVENESS IN AZERBAIJAN - Assessing Sectorial Economic Policies"
"The history of the bank"
the original
"The Law of the Republic of Azerbaijan on The Central Bank of the Republic of Azerbaijan"
the original
"The Law of the Republic of Azerbaijan on Banks"

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