Azerbaijan Banks Association talks issue of problem loans in the country (Exclusive)
Baku, Azerbaijan, Feb. 22
By Sara Israfilbayova – Trend:
Solving issues regarding problem loans is imperative for stabilizing the sector, Zakir Nuriyev, chairman of the Azerbaijan Banks Association (ABA), told Trend.
Nuriyev noted that one of the important problems regarding problem loans is pledge implementation (the implementation of guarantees for a loan in the event that the debtor loses its solvency).
From this point of view, according to the chairman, the creation of mechanisms for holding pledge auctions in accordance with the market demands is of utmost importance.
"One of the important issues regarding strengthening the stability of the banking sector, as well as restoring and accelerating lending to the economy, is increasing economic transparency," he said.
Nuriyev further noted that institutionalization, increasing financial and economic literacy, as well as managerial skills of business entities, are of particular importance in terms of a healthy economy.
"From the point of view of institutional development, the banking sector needs constant improvement. I think that solving all these issues will create conditions for forming a more stable, dynamic and efficient banking sector in the country," the chairman concluded.
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