Azerbaijan, Baku, Oct. 22 /Trend, N.Ismayilova/
Azerbaijani banks have created reserves covering more than half of non-business loans, Director General of the Central Bank of Azerbaijan (CBA) Rashad Orujov told reporters on Saturday.
"Improvements are recorded in the country's banks in this regard. The main task today is to reduce the amount of these loans. We made sure that banks have created reserves that cover more than half of these "bad debts", but that does not mean that these debts can not be repaid," Orujov said.
According to him, to repay such loans needs time and literate activities by banks. In this regard, the CBA also provided suggestions for improving the security mechanism in the banking sector.
In the first half year, the loan quality remained at an acceptable level, the share of overdue loans accounted for 6.3 percent of the portfolio, non-standard - 8.5 percent, including non-working - five percent. As of July 1, reserves created on loans amounted to 8.6 percent of the portfolio, increasing by 0.7 percent since the beginning of the year.