Main - TURAN.AZ
Politics
Economics
Energy
Finance
Analytics
- ISSUES -
Bulletin Political News
Bulletin Economical News
Bulletin Energy News
Bulletin Finance News
- REVIEWS -
Markets review
Political Monitoring
Economic Review
* * *
Main - CONTACT.AZ
Want to Say
Social
Culture
Worldwide
- INTERVIEW -
Interview
ÇƏTİN SUAL
- REPORTS -
Photo sessions
Actual report
Significant Azeris
- NEWS COLLECTION -
«Georgian case»
* * *
Enter Main - TURAN.AZ AZ ... RU
Bağla

Banks are saved through sacrificing the economy, expert Hasanov
ÇƏTİN SUAL 


2017 June 22 ( Thursday )  16:17:42
Print version
Русский Azərbaycan

Baku / 23.06.17 / Turan: The banking crisis in Azerbaijan is deepening, and measures to save financial and credit institutions are being carried out at the cost of the entire economy, stated in the interview to the program Cətin sual ("Difficult issue") of the agency Turan Akram Hasanov, the Bank expert, the head of the company "Anticollector" Akram Hasanov.

According to him, the volume of problem loans is growing. On the other hand, citizens withdraw deposits, losing confidence in banks. The volume of problem loans today is only 2 billion manats according to official figures, while international rating agencies estimate them three times as much.

However, according to the expert, despite the closure of 11 banks in 2016, this year no bank is likely to be liquidated. The reason for this is the policy of the Chamber for Control over Financial Markets.

It is not directed to the restructuring of banks' debts and the first is approved at the International Bank of Azerbaijan. Creditors are offered to cede part of the loans and promise to return the rest.

If creditors do not agree, they are warned that they will lose everything and this, in fact, is blackmail.

Thus, the way of saving banks at the expense of entrepreneurs was chosen.

Under such a scenario, the Chamber reports to the country's leadership that the banks have been saved, and the population guarantees the safety of deposits. So, businessmen, the creditors of banks, lose.

This policy is detrimental to the economy, because no one will invest in an economy where the money of entrepreneurs is lost.

According to Hasanov, the reasons for this are the absence of a single economic team in the government. Each structure has narrow departmental interests. The Chamber for the Control of Financial Markets wants to save banks by sacrificing the interests of creditors.

The Central Bank of Azerbaijan, clutching the money supply, is trying to prevent devaluation and inflation, I do not think that the economy is dying without money. The Ministry of Economics, which is called upon to observe general economic interests, is generally inactive.

The Cabinet of Ministers headed by Artur Rasizade is not able to coordinate the work of individual structures and overcome conflicts between them. In the case of Azerbaijan, objective conflicts are also added to objective conflicts - between heads of departments.

What is the way out of the situation? Expert Hasanov proposes the implementation of three important measures. The first is the return of problem loans at the expense of the owners and administrators of banks. It is easy to establish the reasons for problem loans by looking at whom loans were issued on preferential terms, without collateral. Most of the problem loans are essentially money stolen from banks.

For example, the loan portfolio of the largest liquidated bank - "Bank Standart" is 741 million manats and 60% of this amount - 432 million manat, were issued without collateral.

The second measure of recovery Hasanov considers writing off the debts of really insolvent citizens.

Finally, the third step should concern those who can potentially repay loans, but can not do so because of unfair conditions of extradition.

They must be given benefits.

The unresolved nature of credit indebtedness is fraught with social tension. Historically, social explosions and revolutions arose on the basis of discontent with growing debts and an unfair redistribution of property.

Today, debtors often resort to suicide. However, there is no guarantee that tomorrow they will not commit violence against others, work for foreign special services and resort to other crimes.

In Azerbaijan, many loans to ordinary citizens were issued on bail for their apartments.

Hasanov also pointed to the non-transparency of the process of liquidation of banks.

So, the debts of the same Bank Standart are 1 billion 200 million manat, while the property of this institution is estimated 6 times less - 195 million manats.

Thirty one real estate properties of banks in the center of Baku are estimated at only 36 million manat. This creates the ground for corruption deals between bank liquidators and debtors. The Insurance Fund avoids cooperation with the Creditors' Committee of the bank, which includes Hasanov himself.

"We demand from the Fund documents on the conditions for the issuance of loans, on the bank's checks by the Central Bank, explaining how they assessed the property of a bankrupt institution. But they do not give. Although liquidators all over the world operate under the supervision of the creditors' committee," said the expert Hasanov.-06D--

  • (en) All rights reserved! 1991 - Turan News Agency : When reprinting, active hyperlink on www.turan.az and www.contact.az required.
  • (ru) Все права защищены! 1991 - Turan İnformasiya Agentliyi : При использовании материалов активная гиперссылка на www.turan.az и www.contact.az обязательна.
  • (az) Bütün hüquqlar qorunur! 1991 - Turan İnformasiya Agentliyi : Materiallardan istifadə zamanı aktiv hiperlinkər www.turan.azwww.contact.az tələb olunur.
  • Email: agency@turan.az