Azernews.Az

By Trend

The international rating agency Moody's Investor's Service maintains a stable outlook on Azerbaijan’s banking sector, Petr Paklin, vice president and leading analyst of the agency on Azerbaijan’s banking sector told Trend.

"Until August last year, for three consecutive years, the outlook was negative," he said. "The change in valuation was associated with an improved operating environment, expectation of further clean-up of loan portfolios from problem loans, as well as improved capital adequacy thanks to the help of shareholders and restoring the profitability of banks."

He noted that the agency positively assesses the decree by Azerbaijani President Ilham Aliyev on additional measures in connection with solving the issue of problem loans of individuals.

"These measures should improve household creditworthiness and reduce the volume of problem retail loans on banks’ balance sheets thanks to government support," he said.

Azerbaijani President Ilham Aliyev signed a decree on additional measures in connection with solving the issue of the individuals’ problem loans.

The decree envisages the payment of compensation to citizens whose loan burden increased as a result of the devaluation of the manat in February and December 2015.