Azerpoct to expand its financial services

A zerpoct, Azerbaijan's government-backed postal service provider is engaged in the development of mechanisms of micro crediting services.

Elmir Valizade, country’s Deputy Communications and High Technologies Minister announced about this while talking to reporters on June 30.

The deputy minister added that this will allow to expand the list of financial services of the postal operator.

“Currently, Azerpoct implements its operations under the license of the CBA which enables to render financial services in restrained terms,” he said.

Previously, the World Bank has expressed its readiness to allocate a $20 million credit with the terms of 20 years to Azerpoct. The funds are envisaged for the provision of micro crediting services by the postal operator.

The total volume of the micro credits cannot exceed $ 5,000. The issue should be decided on a governmental level as the funds can be allocated only under guarantee of the government.

Azerpoct launched the process of financial services rendering in April 2012. The entity which is eligible to implement all types of banking services except credit issuance and attraction of bank deposits.

Integration of the entity into the banking sector of the country is expected to raise competitiveness in the market. The number of branches and post offices of Azerpoct is more than 1,600.

As much as 37 banks are currently operating in the country which the number of branches amounts to 700.