Economist: Crisis of Azerbaijan`s Banking System Increases

Today there was a meeting of the "round table" in the International Press Center Sputnik Azerbaijan, dedicated to the decision of the Central Bank to begin deposit auctions to raise funds. On the eve of that, CBA in the first deposit auction was able to attract 129 million AZN through local credit and financial organizations. The weighted average interest rate on the consolidated results of the trades amounted to 6.49%, which is normal for the current state of the economy, which undergoes a new phase of development.

So what happens to the banks? According to Samir Aliyev, an expert, the banking sector is a sort of circulatory system of the economy. It is no secret that any problem that arises in the economy, including private businesses, primarily manifests itself in the banking sector. Falling oil prices also affected the state of the banks. In the past year there were two waves of devaluation, which reduced AZN by 100% against the US dollar, so now the banks are in serious condition, experiencing a difficult period. We can say that they are already in crisis. "In the near future, this crisis will manifest itself even more. Recently there has been a situation where the banks find it difficult to issue loans, resulting in stagnation of the banking activity and leading to the crisis in the banking sector," he said. --17D-