Baku, Azerbaijan, Feb. 3
By Azad Hasanli – Trend:
Fitch Ratings expects credit growth to start recovering in 2018.
Dollarization of loans and deposits is slowly declining, also reflecting some improved confidence in the currency, Fitch said.
The restructuring of the country's largest bank, International Bank of Azerbaijan (IBA) has neared completion. The next steps will involve the closing of a significant net open FX position and privatization of the bank.
The IBA is at the stage of recovery since July 2015, which is related to the preparation for the privatization of the bank’s state-owned shares.
In July 2017, creditors of the IBA adopted a plan of voluntary restructuring of the bank’s foreign liabilities.
As a result of the restructuring, the bank exchanged foreign currency liabilities of about $3.34 billion for new bonds of the bank and the state.
(1.7001 AZN = $1 on Feb. 3)