Azerbaijan’s Banking System Weakly Sustained Impacts of Financial Crisis: Head of IMF Mission
Azerbaijan, Baku, 13 March /corr. Trend I.Khalilova / The banking system of Azerbaijan weakly sustained the impacts of the financial crisis, the Head of the International Monetary Fund (IMF) mission, Valerie Fiker, reported to Trend .
"The degree of openness to foreign borrowings in Azerbaijan has been limited, although this year the factor will increase," Fiker said. "However, currently this level is completely low. Therefore, the global crisis which affected Kazakhstan took place in a time that allowed the National Bank of Azerbaijan and other commercial banks to understand the risk with capital flow," Fiker added.
Considering the small amount of these operations, IMF does not see significant risks here.
During the current visit, the Fund gave recommendations to strengthen financial control on the basis of review of the risks. According to the mission head, the control should not take place only on the basis of standard norms. The National Bank should select the banks where the control is made on the basis of existing risks.
"These are framework recommendations for the National Bank in avoiding problems with non-repayment of credits in the future, which may appear as a result of double increase of the credits allocations by the banks," Fiker said.
In addition, the Fund gave recommendations on how to weigh the credit operations.
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