Vuqar Bayramli: problem loans need to be brought up to international level


August 16, Fineko/abc.az. One of the biggest problems for the banking sector is the volume of problem loans, says expert economist Vuqar Bayramli in response to a question from site ABC.AZ about the form in which the solution of problem loans can affect the development of the banking sector.

He points out that it is important to expand activity concerning the reduction of volume of problem loans, especially toxic assets. The expert, however, believes that volume of problem loans and, in particular, the share in the loan portfolio is not at the desired level.

"This suggests that there is a need to carry out activities, paying attention to the structure of problem loans. Because it also testifies that we have many legal entities or individuals engaged in entrepreneurial activity who are unable to take and repay loans. This also affects the structure of problem loans. Reforms in this direction should continue. Problem loans need to be brought up to the international level. Otherwise, problem loans will remain one of the problems for the banking sector," the expert emphasized.