Blow to Banking System

Azerbaijan's banking system, reeling from the February devaluation of the national currency (minus 34.5%), today received another shock therapy (minus 48%).

Bankers were informed about the unpopular measure of the Central Bank, but that it is not easier. The entire loan portfolio (banks and non-bank credit organizations as of November 1, issued 18 billion 566.4 million AZN) is tied to the US dollar and the euro, so that the bad loans hung more heavily on the credit institutions.

Furthermore, private production will stop, including the spheres of agricultural industry, construction, trade and services that will become more passive because of the falling consumer demand. The SSC will not be able to report on the acceptable level of inflation. --17D-

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