BAKU: A microfinance conference on 'Innovative Solutions for Sustainable Microfinance' has been held in Baku, Trend reports. Director General of the Central Bank of Azerbaijan Togrul Aliyev said that the Central Bank of Azerbaijan is currently working on updating prudential regulations for non-bank credit organizations. 'The formation of the microfinance model envisages the creation of opportunities to provide additional financial services to institutions operating in this sector, as well as increasing their competitiveness. Undoubtedly, the main objective of these initiatives is the development of micro and small entrepreneurship in our country. As mentioned earlier, the Central Bank also pays attention to the application of digital technologies. The introduction of digital technologies in the microfinance sector as well as in the financial sector in general is included in our strategy. We pay special attention to ensuring information security and adequate management of cybersecurity challenges. In this re gard, our strategy includes a separate action plan on digital financial initiatives, including special regulations, open banking, digital identification, and cybersecurity initiatives,' he said. According to him, in March this year, the Central Bank established information security requirements for the entire financial sector, including the microfinance sector, banks, and credit organizations. 'This will remain one of our priority supervisory and regulatory objectives in the coming years. In addition, updates and changes to the Central Bank's risk management requirements are expected in light of the changes in legislation on non-bank credit organizations. To this end, work is underway to update prudential regulations for non-bank credit organizations,' he added. Chairman of the Management Board of the Entrepreneurship Development Fund Osman Khaliyev said that the Entrepreneurship Development Fund under Azerbaijan's Ministry of Economy has issued preferential loans exceeding 3.2 billion manat ($1.8 billion) as of today. "As of today, the Fund has granted preferential loans based on over 50,000 applications. The Fund currently collaborates with 40 authorized lending organizations. Looking ahead, officials plan to enhance the efficiency and speed of loan distribution to a greater number of entities, while also expanding partnerships with more authorized lending organizations, including microfinance institutions. As part of this effort, the Fund has implemented several improvements. Since 2021, we have minimized the required documentation. Additionally, the requirement to submit a business plan for loans up to 200,000 manat has been eliminated," Khaliyev noted. Then, the head of the Products and Services Department of AzInTelecom LLC Tamerlan Meshedihasanli added that efforts are underway to connect 6-7 Azerbaijani banks to the SIMA Imza electronic signature system. "Currently, around 10 banks are connected to SIMA Imza, and we are simultaneously working to onboard an additional 6-7 banks. The use of this solut ion will be free for citizens, who will not incur any fees. Our partnership with banks will regulate the associated costs," Meshedihasanli said. He observed that the restricted number of banks presently linked to the system is attributable not to payment complications but to the digitalization process. "Banks and credit organizations in Azerbaijan need to embrace digitalization in order to integrate with SIMA," he added. Besides, he said that efforts are in progress to implement the SIMA Access system at building entrances. "Should the testing prove successful, we will start selling SIMA Access on the local market next year,' he pointed out. Source: Trend News Agency