Fitch: Clean-up of IBA’s balance sheet to be completed in 2017

Baku. 12 December. REPORT.AZ/ Substantial state support for International Bank of Azerbaijan (IBA) remains in place and we expect the clean-up of the bank's balance sheet to be completed next year. Report informs, Fitch international rating agency states in CIS Bank Sector Outlooks.

The document also states that Azerbaijan’s bank sector faces capital and liquidity pressures from currency mismatches and asset-quality deterioration in heavily dollarized loan books.

Due to material capital shortfalls and large losses the Fitch expects further bank failures and clean-up measures next year. According to the report, the Negative Outlook in Azerbaijan reflects a combination of deteriorating bank profiles and the Negative Outlook on the sovereign rating.