‘Baku approach’ towards non-performing assets discussed


December 11, Fineko/abc.az. A meeting has been organized between the Financial Markets Supervision Chamber (FIMSA) and the domestic banks of Azerbaijan.

FIMSA reports that representatives of the Association of Banks of Azerbaijan (ABA), FIMSA and commercial banks held a meeting during which the "Baku approach" towards the mechanism of management of banks’ non-performing assets was presented.

The "Baku approach" implies conclusion of a collective agreement between the banks for restructuring of non-performing assets on the balance sheet of credit institutions. The purpose of the agreement is to coordinate the general principles of the restructuring non-performing (bad) assets, minimize losses in the process of restructuring and prevent bankruptcy of business entities, improvement of which could be provided.

"The participants of the meeting supported the restructuring of such debts. Following the meeting a decision was made to start negotiations with a view to sign a collective agreement and establish a workgroup of reps of banks and FIMSA to regulate this matter," the Chamber said.