Azerbaijan, Baku, Dec. 11 / Trend corr N. Ismayilova / "Azerbaijani Capital Bank is toughening credit policy," Rauf Rzaev, chairman of the board of the bank said.
For already seven days that the bank has suspended providing loans, but rehabilitation of crediting within the next few days is expected.
"I do not consider the suspension of crediting as a positive step as financing the economy should be gone on as far as possible. Presently, the credit policy should be toughened but the allocation of credits should not be totally suspended in order to avoid the situation of 1990," Rzaev said.
According to Rzaev, the reason why Capital Bank toughened credit policy is that before the bank loaned consumer credits in amount 150% exceeding the salary indicated in an appeal of a borrower and now this number was reduced to 100%. Moreover, Capital Bank gives prevalence to family men at crediting.
The bank will demand an additional guarantee and tax provision at car crediting. The bank also intends to continue allocation of mortgage credits which will be granted to the purchase of apartments in newly-erected buildings which passed the entrance examination and included to the register of the state service.
Capital Bank received the first loan for financing mortgages in the amount of $12mln from the Black Sea Commerce and Development Bank.
Capital Bank was founded in 2000. At the end of the first quarter of 2008, the bank became one of the five major banks of Azerbaijan possessing assets in the amount of AZN 290mln although the market share of the bank made up 4%. After the privatization, the stockholders of Capital Bank are Ata Holding (35 %), Khalg Bank (20 %), Azersun Holding (15 %), Pasha Holding (15 %), Khalg Sigorta (7.5 %), natural persons (5%) and collaborators of the bank (2.5 %). Presently, a limited data exists about the beneficiary owners of these companies and their plans regarding the strategy of the bank.
Current official rate on Dec. 11 is 0.8068 AZN/USD.
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