According to him, under the recommendation of Central Bank, the banks have restructured about 110,000 loans in the amount of AZN 600 mln since early 2015: “Restructuration serves to lighten the borrower’s debt load. Banks reduce interest rates in the extension of payment period, some banks don’t require interests”.
Rustamov called on banks to be more active in this process: “Such financial consensus should find an optimal balance between the interests of both population and banks”.
“Currently, Azerbaijan’s banking sector is adapting to global and domestic economic situation”, Chairman of the Central Bank of Azerbaijan Elman Rustamov said during the discussion of 2016 state budget package at the plenary meeting of Azerbaijani Parliament.
Rustamov says CB’s policy on financial stability directed to provision of balance between banks’ sustainability and credit activity: “Currently, the banks continues crediting the economy. AZN 7.5 bln loans, including AZN 5 bln business loans were allocated throughout the year”.
CB chairman added that the loan portfolio of the banks are satisfactory: “Share of overdue credits makes 6.5%. Capital adequacy is 17%. This index must be 8% in accordance with the international standards. Total capital doubled to AZN 4.2 bln, liquidity makes 60-70%. Stress-tests show that the banking sector preserved its paying capacity even in the most pessimist scenario”.
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