OREANDA-NEWS. August 24, 2011. PASHA Bank supposes transference of Azerbaijani banks to international practice of credit provision on floating interest rate.

The Board member, the bank’s Chief Financial Administrator Shahin Mammadov has reported that the situation at the market (change of rates and market volatility) does not allow to raise funds on just fixed rate.

"There is a  tendency that both in 2011 and in 2012 raising funds will depend on LIBOR. In this connection we will have to pass to new style of resource management. It is going to be difficult. Local market is restricted in this information- it should be explained that the rate may change every 6 months, but that is international standard , we are ready for it. We admit that the rate will be floating and not fixed",- Sh. Mammadov said.

At that the bank itself is ready to raise funds at 4-5% annual rate.