Baku, Azerbaijan, May 7
By Emin Aliyev - Trend:
Restriction of loan rates in Azerbaijan will not make them more accessible, head of the Azerbaijan Microfinance Association Jala Hajiyeva told media on May 6.
"The topic of high loan rates in the country is often in the spotlight," she said. "Much has been said that the rates must be decreased and various measures that would speed up the process must be examined. At the same time, the introduction of high-threshold interest rate will not solve the problem. On the contrary, it will complicate the access to financial resources. The bank will stop working in the regions where it will be unprofitable for it to operate at the maximum allowable rates. As a result, residents of these regions will have fewer opportunities."
Moreover, the actual interest rate on business loans in the country has been reduced by nearly seven percent in the past three years.
"The Central Bank's decision on the limitation of consumer lending was rather correct as the country's largest banks have recently competed for volumes, led an aggressive marketing policy," she said. "And this could lead to problems in the future. Finally, the Central Bank's restriction will benefit the entire banking system of the country, as well as shift the focus towards the development of business lending."
Translated by NH
Edited by CN