Russian VTB’s Azerbaijani subsidiary talks rise in overdue dollar loans
Baku, Azerbaijan, June 9
By Anvar Mammadov - Trend:
The volume of overdue loans in the VTB Bank (Azerbaijan) increased in the first quarter of 2016, Yuri Yakovlev, chairman of the bank's management board, told reporters June 9 in Baku.
The main reason for this is that a significant part of the bank's loan portfolio was formed with US dollars, he said.
"The results of the first quarter are not very positive, of course, the volume of overdue loans increased, but we focus on working with those portfolios that have been delayed," said Yakovlev.
"We have launched several restructuring programs for borrowers to be able to pay those loans according schedule," he added.
He expressed hope that the bank will stabilize the situation around its portfolio in coming months.
"The bank has resources and we have not faced the liquidity problem," he noted. "Our clients can be confident that the bank will fulfill all its obligations."
Yakovlev also said the bank plans to start making profit in 2017.
"I think we will completely overcome the problems faced by the banking sector of Azerbaijan as a whole by the end of the year," he said, adding that the VTB Bank (Azerbaijan) also plans to attract additional funds from its shareholders.
As part of its strategy review, the VTB Bank (Azerbaijan) plans to reduce the number of its branches.
VTB Bank (Azerbaijan) OJSC is a subsidiary of the Russian VTB Bank PJSC. The shareholders of the VTB Bank (Azerbaijan) are: VTB Bank PJSC and Ata Holding OJSC.
VTB Bank (Azerbaijan) provides services to corporate business customers, small businesses and private clients.