BAKU, Azerbaijan, June 23. A reduction in interest on a loan is considered impractical in conditions of high inflation in Azerbaijan, Governor of the Central Bank of Azerbaijan Taleh Kazimov said, Trend reports.
Kazimov made the remark during the discussion of the proposed amendments to the law "On the Central Bank of the Republic of Azerbaijan" at today's meeting of the Milli Majlis (Parliament) of Azerbaijan.
He noted that interest on loans in Azerbaijan is 10.1 percent for legal entities and 16.1 percent for individuals.
"This is 14 percent for legal entities and 18.6 percent for individuals in Georgia. Our loan rates are lower than in neighboring countries. The interest on the loan is formed taking into account several factors," he added.
“Lowering interest rates on loans can dramatically increase inflation. This is also unacceptable for macroeconomic indicators," he said.