Azernews.Az

Azerbaijan`s chief banker has denied recent reports that the country`s central bank had ordered major local banks to discontinue granting loans.
"These reports have no merit," Elman Rustamov, board chairman of the National Bank of Azerbaijan (NBA), told reporters Friday. "The halt of credit disbursals may be related to internal problems faced by the banks."
Nearly all banks operating in Azerbaijan suspended the allocation of credits in late August, with some media reports linking the development to an alleged order from the central bank.
Rustamov said private banks have acquired about $2 billion in foreign debt. He explained that, as a rule, banks begin to accumulate funds when the deadline for the repayment of foreign debt approaches.
"Banks may, somewhat, scale down their crediting activity at a time they are accumulating money," he said, adding that not a single local bank intends to discontinue consumer lending.
Rustamov called on banks to exercise "a more cautious approach and restraint" in the domestic market due to current conditions, while taking into account existing risks.
"We have recommended that banks not indulge in consumer crediting and that they thoroughly plan their risks," he said.
Rustamov cited a relative decrease in the liquidity of the banking system as another possible reason for the suspension of loan allocations.