The protection and support of the interests of individuals and business entities affected by the coronavirus (COVID-19) pandemic continue in Azerbaijan, the Central Bank of Azerbaijan (CBA) stated, Trend reports.

The support to the entrepreneurs is provided in the context of a gradual economic recovery in the country amid easing COVID-related measures in various sectors of the economy.

According to the CBA, in line with the decree of the CBA board, which allows avoiding the accrual of interest, penalties and other fines, the validity of recommendations to credit institutions to prevent the deterioration of customers’ credit history due to delinquencies on loan obligations has been extended until October 1, 2021.

At the same time, until this date, restrictions on the payment of dividends remain in order to further strengthen the capital positions of credit and insurance organizations and ensure that their free funds are directed to capital.

“At the next stage of gradual adaptation of the banking sector to the new regulatory requirements for capital, starting from July 1, 2021, market and operational risks will be taken into account in the aggregate and first-order capital adequacy ratios of banks. In addition, from this date, the minimum threshold for the aggregate capital adequacy ratio will be restored at the level established by the relevant regulations of the CBA. The application of these requirements will serve to create an additional buffer in the capital of banks to cover operational and market risks,” the bank said.

It was also decided to extend until January 1, 2022, the validity of the regulatory discount due to the countercyclical capital buffer.

Source: TREND News Agency