Azerbaijani banks to get double benefit thanks to decree on problem loans - CBA

  02 March 2019    Read: 1750
 Azerbaijani banks to get double benefit thanks to decree on problem loans - CBA

The decree of President Ilham Aliyev on additional measures for addressing issues of problem loans of natural persons in Azerbaijan will provide significant support to the country's banking sector, Elman Rustamov, chairman of the Central Bank of Azerbaijan (CBA), said in an interview with a local TV channel, AzVision.az reports citing Trend.

Rustamov stressed that the decree facilitates the rehabilitation of the whole sector: "This will help to completely rehabilitate some banks which currently have problems with capital."

As a result, the chairman continued, cheap credit resources will appear in the market, which will make it possible to actively credit the economy.

"Banks will profit double with this decree. Bank balances will improve, and they will receive cheap funds for lending to the economy," Rustamov said.

Rustamov also noted that the decree will remove the burden on the family budget of citizens.

The decree provides for the payment of compensation for citizens whose loan burden increased due to the devaluation of the Azerbaijani manat in February and December 2015. The decree also creates opportunities for the restructurization of both dollar and manat loans with a delay of more than 360 days.

Also, banks will receive preferential loans under a state guarantee in the amount of up to 682 million manats as part of the decree.


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