Sanation of Azerbaijani banking sector will take several years

Baku. 7 November. REPORT.AZ/ Assuming the liabilities of International Bank of Azerbaijan before foreign creditors by the state has saved the funds in the amount of $ 300 mln.” 

Report informs, finance minister Samir Sharifov said.

“The bank had to fulfill its liabilities before foreign creditors, otherwise it would be defaulted.”

For this reason, the state replaced bank’s liabilities with its own liabilities that is assumed them. As a result, the foreign debt as a result increased by $ 2.4 billion. IBA’s ratings tend to improve and bank may continue to operate in stable mode. We have met with bank’s creditors and convinced them that this is the best way. Because the debt borrowed a state is more trustful than the debt borrowed by the bank. Creditors believe us. Azerbaijan operate on international arena, it is not a closed state,” he added.

He said that IBA depositors did not suffer a loss from this process and all their rights are protected. Sharifov also added that measures for sanation of banking sector continues and it will take several years.