Azerbaijan, Baku, 11 Dec/ Trend corr N. Ismayilova/ Foreign debts of Azerbaijan totals to $8.6bln or 16% of GDP, said Rashad Orujov, head of Department for Control over Credit Organizations of the National Bank of Azerbaijan.
"Strategic currency reserves of Azerbaijan exceed foreign liabilities almost by twice which ensures high paying capacity and economic security under circumstances of financial crisis," Orujov said.
He said foreign liabilities of private sector totals $5.8bln, in other words 32% of strategic currency reserves. Meanwhile foreign liabilities of the bank sector reach $2bln. Net foreign offers of Azerbaijan in world financial crisis amounts to $19bln.
"Azerbaijani banks have enough liquidity to pay foreign debts and liquid assets of banks total to AZN 1.9bln which makes up 23% of a total amount of assets," Orujov said.
He said liquidity of Azerbaijani banks is 60%-70% while requirements make up 30% which exceeds required norms twice.
For past 15 years, bank sector of the country grew by over ten times as a whole which is unprecedented foe other countries. Though NBA has toughened prudential norms which led to more conservative policy in bank system, bank assets grew by 48% over ten months of 2008 and credit portfolio by 43%.
Current situation in bank sector points to high financial stability which is indicated by the share of overdue credits which make up 2.1% of total credit investments, NBA representative said.
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