FIMSA: Situation with non-performing loans stabilized

Baku. 16 March. REPORT.AZ/ The situation related to accumulation of non-performing loans seems stabilizing.

Report informs, chief of prudential policy and methodology department of Financial Market Supervisory Authority (FIMSA) Rustam Tahirov told at today's event on Azerbaijani banking sector organized by Fitch international rating agency.

Nevertheless, banks started to reserve more funds keeping in mind non-performing loans, which eventually leads to income drop and sometimes even to loss of capital.

R. Tahirov told that at present Azerbaijani banks have liquidity surplus: “Regular stress-tests held by Chamber revealed that situation related to liquidity is more stable than it was in September of last year. In this period banks gained an opportunity to reduce foreign debts, which have been reduced by 20%”.

FIMSA official also noted that currently the banks consider next steps in this field, frames to be determined, and legislative drafts to be adopted: “Especially, we expect new approach for classification of assets”.