Foreign debt of Azerbaijani banks is 22% of total liabilities

Baku. 10 June. REPORT.AZ/ Remaining amount of foreign debt in banking sector amounted to 6.4 billion manats or 22% of total liabilities as of April 1, 2015.

Report informs referring to the Central Bank, the banking sector refinancing (rollover) ratio stood at 89% in March this year.In the medium term (2009-2014 years)the sector's ratio of external debt refinancing was 150% of the sector's ratio it is also reflects a high potential to attract funds from foreign markets

According to the report, however, simulation of worsening the ability to draw funds from the banking sector was carried out by Central Bank.To this end, the liquidity requirement and liquidity overload / deficit is calculated.

According to estimations, banking sector is resistant enough to slow down foreign debt refinancing the banking sector and a sustainable external debt refinancing and banks have enough liquid assets to pay involved funds.

If refinancing rate will be less than 20% there may be a shortage of liquidity in the banking sector.