Azer Amirov: Enforcement of Court Decisions Hampers the Recovery of Distressed Banking Assets

The main difficulties banks face in recovering distressed assets are related to judicial and enforcement processes.

As Report informs, this was stated by Azer Amirov, Director of the Legal Department of the Deposit Insurance Fund, at a forum dedicated to National Press Day.

According to him, not only the fund, which acts as the liquidator of banks, but also operating banks face problems in this matter.

"However, operating banks have broader capabilities compared to banks undergoing liquidation. Using their available financial resources, they can restructure loans, provide additional financing, and take more flexible steps to recover distressed business loans. Moreover, their clients treat their obligations more responsibly, as they cooperate with operating banks not only on loans but also on other banking services," he noted.

The head of the department added that problems in loan processing, collateral issues, and other matters often lead to delays in court proceedings for the recovery of distressed loans or in the enforcement of court decisions.

Amirov emphasized that in banks undergoing liquidation, problems are mainly observed with the recovery of large business loans, while the situation with consumer loans is somewhat better.

He added that, taking into account judicial and enforcement decisions, managing distressed assets of banks undergoing liquidation and recovering them is a significantly more complex process.