In order to neutralize the impact of macroeconomic risks on the banking sector within the framework of counter-cyclical prudential regulation of the sector and support for financial stability, the Central Bank has lowered the rate of redundancy of controlled assets to 2 percent on assets which passed restructuring after February 23, 2015, and up to 1 percent on assets that didn’t pass restructuring.
The previous reservation rate of controlled assets was 5 percent.
In addition, according to the decision of the Central Bank, changes were made to the rules of improving the category of assets after restructuring.
Thus, in accordance with the amendments, the assets, on which no delay in monthly payments was observed for six months, are considered controlled ones.
Consumer and interbank loans, on which at least 50 percent of the main amount was paid and the remaining payments (main debt and interest) are fully carried out on time, belong to the same category.
Azerbaijan changes reservation rate of controlled assets
17 October 2015
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The Central Bank of Azerbaijan (CBA) has decided to change the reservation rate of controlled assets.
