At present, the total assets of Azerbaijani banks account for 35 billion manats. Of this amount, 20 billion AZN refer to the loan portfolio, including 15 billion of long-term business loans. These data were led by the President of the Association of Banks of Azerbaijan (ABA), Zakir Nuriyev, in an interview with the Voice of America.
The number of borrowers of loans is two million. On January 1, there were about 1.5 billion overdue loans. Most of them fall on the Baku-Sumgayit region, he said.
Could there be a decision on the repayment of loans on the exchange rate that was before the devaluation on December 21 - 1 USD = 1.05 manats? In answering this question, Nuriyev said that banks and borrowers of loans in contracts fixed the amount of the debt, not the course. That is, if a citizen took credit for 1 thousand dollars, he should return 1 thousand dollars. At the same time, the course of the preparation of the loan and its repayment is not subject to contract.
After the devaluation the debts rose in AZN. However, it should be the subject of discussion between the lender and the borrower, Nuriyev said.
In his view, help to citizens in payment of debts and social projects are issues related to the competence of the government. These issues are regulated by the attitude of citizens and the state, said Nuriyev.
Will the state help the citizens, and does it have such opportunities? On these issues, he said, “The state has always helped citizens in every situation and it will probably help in this matter. In the press on this subject there were different views indicating several sources. One of them is to use the difference arising after the revaluation of CBA foreign exchange reserves as a result of the devaluation.”
What measures are being taken to prevent the citizens from withdrawing their bank deposits en m asse? In answering this question, Nuriyev noted that taking into account the effect of the devaluation, the amount of deposits in banks is 9 billion manats. In the banking sector there is excess liquidity in the amount of 2 billion manats. Therefore, today the problem of outflow of people’s deposits from banks does not exist.
On the other hand, the law adopted by the Parliament on full deposit insurance creates a reliable security to protect deposits, Nuriyev said.
Can the CBA in support of banks reduce the refinancing rate or provide them with long-term loans? On this Nuriyev said that the Central Bank's refinancing rate is extremely low. On the other hand, if the banks have problems with the current liquidity, the CBA assists them.
However, in the future it is supposed to implement the programs of state aid to banks. This assistance can be provided both by the CBA and the government, Nuriyev concluded.
Yesterday the Minister of Finance Samir Sharifov said the issue of restructuring of foreign currency loans should be resolved between banks and borrowers. He made it clear that the government will not grant compensation for the partial repayment of problem loans. -03C--
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