...

Azerbaijani banks establish reserves worth 90 percent in problem loans

Business Materials 15 December 2009 13:10 (UTC +04:00)

Azerbaijan, Baku, Dec. 15 / corr Trend H.Ismayilova /

Azerbaijani banks established reserves at 90 percent of the total problem loans, Central Bank of Azerbaijan (CBA) Credit Organizations Control Department head Rashad Orujov said today.

"The figure is high enough to demonstrate the stability of the sector. For instance, in neighboring countries like Russia and Kazakhstan, which suffered more from the crisis, the figure is only 30 40 percent," Orujov said.

According to the bank official, problem loans constitute four percent of the total loan portfolio of Azerbaijani banks, although the international experience shows that risks boost this figure by over six percent.

"The figure does not excite serious concerns, while the CBA recommends that local banks strengthen measures directed at improving the quality of loans," Orujov added.

Tags:
Latest

Latest