Press Review 06/06/2016

Ineffectiveness of anti-crisis measures of the government, instability of banks and bad loans are the main topics of today's press.

Azadlig published an article: Government Receives “Two” for Anti-crisis Measures, in which the expert Nemat Aliyev discusses anti-crisis measures. He believes that the failure is related to the lack of understanding by the government of the entire magnitude of the problem or the lack desire to understand it. The main anti-crisis measures should take place in the development of non-oil sector. If there are no positive results, then the measures are taken in the wrong direction. Corruption and bribery cannot be discounted. We should create normal conditions and environment for economic development. The country's GDP is reduced, increasing financial losses, the expert said.

Echo published an article Which Banks in Azerbaijan Can We Trust? "Given the current state of the banking system of Azerbaijan, unfortunately, we cannot completely trust any bank in the country. The fact is that the banking system is dependent on other financial institutions, and while unreliable banks operate in the market, the banking system of the country is at stake. However keeping money "under the pillow" is also dangerous. It is safest to trust money to banks that do not hide their financial statements. There are about 10-12 of them in the Azerbaijani market. But there is no guarantee that one or another bank does not embellish its accounts. Despite the fact that none of the Azerbaijani banks can boast with its reliability, theoretically possible is exception of banks, where the state's share exceeds 50%. According to the legislation, if these banks go bankrupt, the government will have to compensate customer deposits.

Yeni Musavat discusses the issue of problem loans with the expert Vugar Bayramov. The expert believes that the amount of bad loans is about 1 billion 500 million USD. In reality, however, this figure is more. The banking system is not willing to make concessions in the interests, and the Central Bank hesitates.