Elman Rustamov: Banking sector in the worst-case scenario will preserve the solvency

Baku. 13 October. REPORT.AZ/ Since the beginning of the year, on the recommendation of the Central Bank was restructured about 110 thousand loans. 

Report informs, Chairman of the Central Bank Elman Rustamov said at a meeting of the Milli Majlis on October 13 in the discussions of the draft budget for next year.

According to him, this is the mitigation of the burden of public debt: "Some banks extend deadlines, without imposing interest. I believe, the banks should be more active in this process."

He said that, now the banks continue lending to the economy: "During the year, loans granted in the amount of 7.5 billion manats, as well business loans of 5 billion AZN. The share of problem loans in total loan portfolio is 6.5%."

E.Rustamov said that the capital adequacy ratio is 17%, although due to the international standards, this figure should be 8%: "The total capital of the banking sector over the last year increased by 2 times - up to 4.2 billion manats.

The requirement for liquidity exceeds 2 times. Stress tests show that the banking sector in the worst-case scenario will preserve solvency."

According to him, the funds are received by the International Bank of Azerbaijan (IBAR), will cause lower interest rates: "Appropriate measures are carried out to privatize state-owned part of the stake in the International Bank of Azerbaijan (IBAR). As part of the rehabilitation measures received by the IBAR, funds will increase the volume of lending to lower interest rates, to connect socio-economic programs, including mortgage lending."