Several Azeri commercial banks are on the verge of bankruptcy, however the official hammering procedure is being postponed, Head of Economic Research Center Gubad Ibadoglu told Sept.11 Azeri “Echo” e-source.

According to him, bankruptcy of certain banks might exert a war of nerves on the whole sector and entail collapse in confidence amid the population in banking sector of the country.

Fineko/abc.az referring to the informed source in Central Bank of Azerbaijan reports, that due to obsolete banking management system many Azeri banks might go bankrupt. In particular, the level of non-performing loans reaches 30-35% of the credit portfolio. As a result, the banks will survive solely at the expense of their capital and stay up owing to 1-2 big clients. The list of potential bankrupts comprises at least 4 monetary institutions.

Azerbaijani CB decision on declaring a number of the banks bankrupt is most likely to be postponed till the stabilization period, when the impact of the global crisis is resolved. “By the all the details will come into prominence,” Ibadoglu added. For a while, several banks were operating in the red. “On the one hand the situation got more complex by raise of non-performing loans, and increase of borrowed money due to crisis along with banks liabilities. N the other,” economist stated.

Vusal Gasimli, Deputy Chairman of Baku Economic Research Center said that long before the crisis 8-12 Azerbaijan commercial banks were operating at a loss. He considers it acceptable for the up-to-date banking system, having one of five banks operating at deficit. However, the state of banks worsened even more under the crisis and “bankruptcy of any bank might negatively affect the business image of Azerbaijan, that is recently strengthening,” Gasimli concluded.