The main problem in ensuring the stability of the banking sector during a pandemic is the uncertainty because it is extremely difficult to predict how long this situation will remain, Trend reports referring to the speech of Head of the Azerbaijan Banks Association Zakir Nuriyev made during Hedef program on the AzTV channel.
“In accordance with the recommendations of the international financial institutions, it is necessary not to try to hide the problems that arise, but to solve them through the banks' internal reserves to maintain the stability of the financial sector,” Nuriyev added.
“At the same time, the activity in this sphere must be carried out simultaneously and in parallel with the state support measures, that is, along with the prudential preferences planned by the Central Bank of Azerbaijan in accordance with additional support measures,” head of the association added. “The restructuring of loans will be carried out. The government will render support for the payment of interest on loans issued through the state mortgage lending, loans issued through the Entrepreneurship Development Fund and the Agrarian Credit and Development Agency.”
“The measures are also being strengthened to support the strategic spheres, such as the production of medical equipment and others,” head of the association said.
“One of the main factors that will ensure the stability of the financial and banking sector is the implementation of the measures to reduce the specific share of banking assets with a high risk together with the relevant state support measures,” head of the association said.
"Presently, the measures to supporting the country's economy by the banking sector, which are implemented in parallel with the action plan developed by the state, will be quite effective as the country's banking sector has fairly high liquid assets," Nuriyev added.
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