IMF: Further steps are needed to improve the health of the banking system and strengthen its resilience EXCLUSIVE

The situation in Azerbaijan’s banking sector has stabilized. Capital levels and the profitability of banks have improved, Natalia Tamirisa, head of the IMF mission in Azerbaijan, said in an exclusive interview with Report.

"The recently announced nonperforming loan (NPL) program will help improve both borrowers’ and banks’ balance sheets. However, further steps are needed to improve the health of the banking system and strengthen its resilience. These steps need to be comprehensive, including a broad-based approach to tackling NPLs. Improved competition in the sector is an important as well," she said.

According to her, the IMF supports the government’s intention to privatize IBA as soon as possible, and finding a foreign investor would be one of the options.