Azerbaijan launches two projects to fight excessive debt

Business Materials 5 October 2011 14:37 (UTC +04:00)

Azerbaijan, Baku, Oct. 5 / Trend N. Ismayilova /

The Azerbaijani Association of Microfinance Organizations (AMFA) has started to implement two projects to combat excessive debt, AMFA Executive Director Jala Hajiyeva said today.

"The AMFA has studied the experience of various countries, including Bosnia and Herzegovina," she said. "These countries have the most developed microfinance market in Central and Eastern Europe. The problem with excessive debt has exacerbated the situation on the market. It is necessary to conduct research to clarify the situation in Azerbaijan. We began implementing two projects."

She said that the first project covers four regional centers - Sheki, Lankaran, Ganja, Baku.

"The association collects data on clients having active loans in several organizations operating in the same region," she said.

"The second initiative is financed by the EFSE," she said. "The Polish Microfinance Center provides technical support."

She said that the research will be completed by mid-December. The preliminary results will be available in January.

"This research was conducted in Bosnia and Herzegovina," she said. "The research is conducted in Azerbaijan. The international organizations help to make recommendations regarding the role of microfinance institutions."

"The problem is that a client's total debt exceeds its customer's profits," she said.