Fitch: Azerbaijan’s problem loans to exceed 10%

Fitch: Azerbaijan’s problem loans to exceed 10%
  • Clock-gray 12:36
  • calendar-gray 23 November 2020

Fitch Rating expects problem loans to increase to above 10% in 2021 as part of the loans, which were restructured due to the pandemic, may become overdue, APA-Economics reports citing Fitch.

According to the agency, Azerbaijan’s banks are weak as reflected by Fitch's Banking System Indicator (BSI) score of 'b' and the banks’ asset quality will be pressured by the impact of COVID-19 and lower oil prices.  

Note that Azerbaijan's non-performing loans fell slightly to 7.2% of loans at end-September 2020 from 8.3% at end-2019, continuing to benefit from government social support schemes to households from 2019.

Mirsaid İbrahimzade

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