Azernews.Az

Nazrin Abdul

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The Board of the Central Bank of Azerbaijan (CBA) has made amendments to the “Regulation on Classification of Assets and Establishment of Special Reserves for Possible Losses,” originally approved on July 22, 2022.

Azernews reports that the new decision was signed by the Governor of the Central Bank, Taleh Kazimov.

Under the updated rules, when calculating a borrower’s loss, interest, tax, and depreciation expenses will no longer be taken into account. In other words, a borrower will be considered to be operating at a loss if its profit before interest, taxes, and depreciation is less than the total interest expenses or negative.

Additionally, securities issued by multilateral development banks with the same credit rating as those issued by the Central Bank of Azerbaijan are now classified as high-quality securities.

The Central Bank’s Legal Department has been instructed to submit the decision to the Ministry of Justice within three days for inclusion in the State Registry of Legal Acts.