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Azerbaijan expects decline of overdue loans

Business Materials 26 October 2017 16:30 (UTC +04:00)
The Azerbaijan Banks Association (ABA) forecasts reduction in the volume of overdue loans in the country.
Azerbaijan expects decline of overdue loans

Baku, Azerbaijan, Oct. 26

By Azad Hasanli – Trend:

The Azerbaijan Banks Association (ABA) forecasts reduction in the volume of overdue loans in the country, ABA head Zakir Nuriyev told reporters in Baku Oct. 26.

He noted that since early 2017, the volume of overdue loans in Azerbaijan has increased from $1.6 billion to $1.8 billion, but this increase was expected.

“After two devaluations in Azerbaijan [in February and December 2015], banks were forced to restructure a big part of foreign currency loans. We understood that over time, a part of restructured loans will become problem loans. It happened, but we believe that their volume will reduce in the future,” Nuriyev said.

Addressing the rumors about the possibility of writing off problem loans of the population which is often discussed after devaluations, he said that the debt relationship between banks and their customers is based on written contracts that do not provide for the possibility of writing off loans.

“No country in the world does this. There can be no possibility of writing off problem loans,” Nuriyev noted.

According to the Central Bank of Azerbaijan, the total volume of overdue loans in the country amounted to 1.8 billion manats as of Sept. 1, 2017, which is 12.5 percent more compared to early 2017.

(1.7002 manats = 1$ on Oct. 26)

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