Loan portfolio reduced by AZN 14.4 bn for Mar-May 2020


July 10, Fineko/abc.az. Currently, one of the main tasks for the banking sector is to place more of its funds, in other words, to increase the loan portfolio.

ABC.AZ reports that the statement was made by Vusal Gasimli, the head of the Center for Analysis of Economic Reforms & Communications, said.

According to Gasimli, loans given by banks to customers from February to May 2020 are declining monthly: “The loan portfolio for March-May of this year decreased by 6.1% to AZN 14.4 bn. This was also affected by obtaining banking licenses. As for banks' cash and correspondent accounts with the Central Bank and other banks, the volume of securities is also growing. The risks caused by the pandemic and the quarantine regime increase the risk of antipathy towards banks. In this sense, there appeared a need for government’s intervention."