Endless problems of the banking sector – Deposits are shrinking


September 7, Fineko/abc.az. Azerbaijan observes an increase of problem loans, expert Ekrem Hasanov told ABC.AZ when commenting on the situation in the domestic banking sector.

He noted that the pandemic has further aggravated the state of the local banking system, which is already in crisis.

Hasanov reminded that the crisis began after the devaluation of 2015 and noted that the crisis that has been going on since the end of March primarily worsened the situation with problem loans: "Both consumers and entrepreneurs certainly find it difficult to repay their loans as some people are out of work, while wages of some of employees have reduced. On the one hand, at the end of April the Central Bank recommended the banks to grant a deferral to customers until the end of September. Now banks are trying not to give this delay, and in any case, problem loans have increased. At the same time, a significant part of the loans are not repaid. On the other hand, deposits are withdrawn from banks. Since the beginning of the year, savings have decreased almost by 1 billion manats."