Largest Azerbaijani bank stops paying foreign debts
The serious condition of Azerbaijan’s bank system is discussed by not only the Azerbaijani media, but also by international press. Forbes also weighed in on the issue.
The International Bank of Azerbaijan, the largest bank of the country, is on the verge of collapse due to the currency deficit in the country, and is unable to pay foreign debt, and has launched negotiations with creditors on restructuring the debts.
On May 10, the bank officially declared that in the event of agreeing with creditors, the foreign currency debt will be substituted with the country’s sovereign bonds. This means that as result of the manat depreciation during the previous year, the difficulties among the population in repaying loans deepened the banking system crisis even more. Since global oil prices began to fall, more than a dozen of banks seized operations in Azerbaijan.
