Moody’s: State support to Azerbaijan’s banking sector high enough (UPDATE)
Details added (first version posted on 13:41)
Baku, Azerbaijan, May 25
By Anvar Mammadov – Trend:
The level of state support to Azerbaijan’s banking sector is high enough, says Maria Malyukova, an analyst at the international ratings agency Moody’s.
The recent decisions of the regulator – the Financial Markets Supervision Authority – show that the support can become more selective and will be aimed at preserving big banks in the system, she said at the Moody’s Annual Azerbaijan Summit in Baku on May 25.
“Over the years, the Azerbaijani government has supported the country’s banking sector, primarily the biggest bank – the International Bank of Azerbaijan (IBA). As we have seen, the transfer of problem loans worth 10 billion manats, which accounts for 18 percent of GDP as well as capital injections in 2015 and 2017 were carried out. The state has high possibilities for supporting the banking system. Azerbaijan’s gold and currency reserves amounted to $33 billion in late 2016 or 100 percent of the country’s GDP, with the banking sector accounting for 53 percent of GDP,” noted Malyukova.
Earlier, the IBA commenced a process of voluntary debt restructuring as part of its rehabilitation.
The International Bank of Azerbaijan has been operating since 1992 and is one of the country’s two state-owned banks.