Azerbaijani Banking Sector not Incur Problems with Re-Payment of Foreign Debts: Deputy Head of National Bank

Business Materials 25 November 2008 22:13 (UTC +04:00)

Azerbaijan, Baku, 25 November /corr. Trend I.Khalilova / The stability of the banking system of Azerbaijan against the global processes is confirmed by the rates of re-payment of the external liabilities, which over the last 10 months of 2008 totaled AZN 900mln, Deputy Chairman of the Board of the National Bank of Azerbaijan (NBA), Avtandil Babayev, said on 25 November.

Babayev said that today the gross external liabilities of the Azerbaijan banks total AZN 2.2bln, which do not exceed 25% of assets of the banks. In Kazakhstan this index reaches 78%.Half of the attracted finance falls on the International Bank of Azerbaijan. On the short term loans, the International Bank continues to make payments in accordance with the schedule, and last year re-paid nearly $500mln.

"With the height of global crisis, our bank re-paid totally $50-160mln to foreign creditors," the Chairman of IBA Board, Jahangir Hajiyev, said recently. "No one felt this, neither the clients of bank nor the bank itself. We have sufficient funds, and the portfolio of liabilities was diversified, i.e., we do not depend on one source," he added. According to him, the International Bank follows the policy, accepted already 6-7 years ago, which envisages geographical diversification, which makes it possible to remove dependence on one client, product and one market.

Current rate on 25 November is 0.8079 AZN/USD.

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