Expert: Volume of bad loans will increase in absence of support to banking sector

Baku. 25 February. REPORT.AZ/ The share of problem loans in the banking sector of Azerbaijan is about 10% of total credit investments. 

Report informs, Director of the Azerbaijan Bank Training Center (ABTC) Javanshir Abdullayev said: "According to the Central Bank, the problem loans accounted for 7%."

"In the absence of support to the banking sector, volume of problem loans will continue to rise. Another reason for the growth of bad loans is an increasing level of unemployment. It should be noted that by the end of this year, only in the banking sector 3,000 persons have resigned. The unemployment problem actualized particularly after the second devaluation. If the first devaluation has mainly beaten the banks, the weight of the second devaluation laid on shoulders of the population", said J.Abdullayev.

He added that the current law has gaps in relation to the management of problem loans, so it is necessary to improve legislative framework.