Elman Rustamov: Global financial crisis bypassed Azerbaijan

Elman Rustamov: Global financial crisis bypassed Azerbaijan
# 24 October 2008 12:40 (UTC +04:00)
Rustamov added that there is no fundamental ground for the manifestation of the crisis in Azerbaijan’s banking system.
“The financial situation in Azerbaijan is very stable, the strategic reserves exceeded US$17 billion, total external debt, including the private sector debts is US$8 billion. This indicates a high external liquidity”, he noted.
He said that the only problem in the banking system is the US$2 billion foreign debts owed by banks.
“Of this, US$1 billion is owed by a state-owned International Bank of Azerbaijan. These debts are being paid on certain schedule and did not pose any problems. If the banking sector begins experiencing any problem, the government will take necessary measures. So, depositors and creditors of our banks have no reason to worry”, he added.
Also, he stated that the world financial crisis could create no threat to the strategic foreign exchange reserves of Azerbaijan because, with the most conservative assets management strategies, both the central bank and the State Oil Fund keep these funds in the central banks of leading countries and in the international financial institutions.
According to him, although there is lower yield on funds kept in these reliable institutions and the profitability further dropped after the central banks cut rates, Azerbaijan’s strategic position is to preserve financial reserves.


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