CBA amends classification of restructured assets
The Central Bank of Azerbaijan has changed the classification of restructured assets.
The consequential amendments were made to the “Rules of classification of assets and formation of special reserves to cover possible losses”, approved by the decision of the Chairman of CBA Elman Rustamov.
All assets, restructured until February 23, 2015, cannot be classified as standard ones, and those restructured since February 23, 2015 - as satisfactory ones, according to the amendments.
Restructured assets (loans) are the assets for which the original terms of payment under the credit agreement have been changed due to the deteriorating financial condition of the borrower, or a new debt liability has been drawn.
|
Overdue period |
0-30 days |
31-90 days |
91-180 days |
181-270 days |
Over 270 days |
|
Quality criteria |
|||||
|
High quality |
Satisfactory |
Controlled |
Unsatisfactory |
Unsafe |
Irredeemable |
|
Average quality |
Controlled |
Unsatisfactory |
Unsafe |
Irredeemable |
Irredeemable |
|
Low quality |
Unsatisfactory |
Unsafe |
Irredeemable |
Irredeemable |
Irredeemable |
The amendments came into force as of March 7.
There are 45 banks in Azerbaijan, two of which are state-owned ones.
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