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10:51 23 March
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Fitch forecasts negative outlook for some Azerbaijani banks this year

High dollarization, currency mismatch and capital deficiency that Azerbaijan-based banks face due to difficulties by devaluation of national currency, low assets quality continues, says the information at the 6th annual conference of Fitch Rating held in Baku today.

The agency thinks that bank losses will continue in 2017 and outlook for a number of Azerbaijani banks will be negative.

 

“As at the end of 2016 the non-performing assets reached 21% of total loan portfolio, while this index was 12% in 2015. We plan that the loans in foreign currency will create a pressure in 2017. Moreover, we forecast that the loan portfolio will decline 5% this year. Capital deficiency due to low assets quality and risks of foreign currency will have negative impact on several banks in 2017 and normalization measures will be taken in the sector”, the information said. 

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