Conference ‘Solution to bad loans: Experience of Azerbaijan and S Korea` begins


May 20, Fineko/ Today, the Center for Analysis of Economic Reforms & Communications in collaboration with the Embassy of the Republic of Korea in Azerbaijan and the Korean Development Institute is holding an international conference on the theme "Solution to bad loans: Experience of Azerbaijan and South Korea”.

Comparing the international experience of problem loans and the model of Azerbaijan, Center’s executive director Vusal Gasimli pointed out that the Korean Asset Management Corporation (KAMCO) created the Problem Loan Management Fund to eliminate the negative consequences of the financial crisis in Asia in 1997.

According to Gasimli, the strategy on problem loans in Europe is implemented in the following areas: strengthening of internal measures of banks, development of the toxic assets market, prevention of asymmetry of data and establishment of an organization responsible for assets, transfer of toxic assets to third parties (direct investors, authorities responsible for management of assets, etc).

The conference participants also discussed the question of problem loans of some countries.