BAKU, Azerbaijan, January 24. Azerbaijan has approved "Regulation on organization and implementation of activities by payment organizations and electronic money organizations", Trend reports.
The relevant decision was signed by the chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov.
According to the document, payment organizations and e-money organizations in Azerbaijan will be able to provide loans to individuals receiving their services.
In order to carry out payment transactions through loan transfer (payment order), direct debit, payment card, or other similar payment instruments, a payment organization carrying out a payment transaction may provide a loan to a user of payment service, taking advantage of the payment service of the organization.
The loan is granted in accordance with the Civil Code of Azerbaijan with fulfillment of the following requirements:
- subject to this rule, the loan is granted for a period not exceeding 2 (two) months exclusively in the national currency, not more than 50 (fifty) manat ($29.41) for one payment operation;
- the customer of the payment service does not receive a new loan until the received loan is fully repaid;
- no credit shall be granted if the total capital of the organization is lower than the requirements set forth by this rule;
- the total amount of loans granted may not exceed 10 percent of the organization's total capital;
- a loan is considered an uncollectable asset if it is not repaid within 2 (two) months from the date of issue and is not granted by the organization if the volume of such loans exceeds 10 percent of the total amount of issued loans.
- the loans granted to the users of the payment service within the framework of the requirements established by this Rule are financed exclusively at the expense of the organization's funds. The organization may not credit the account with the funds received from the users of the payment service.
- the organization submits a report on issued credits to the CBA on a monthly basis within the first 5 (five) working days of the following month in accordance with this Rule.