Azerbaijan, Baku, Sept. 25 / Trend A. Akhundov /
The Central Bank of Azerbaijan (CBA) has highlighted the continuing trend of reducing interest rates on bank loans in the country, CBA first deputy chairman Alim Guliyev told media on Tuesday.
"The Central Bank has worked hard to examine the situation with interest rates on loans in the country and evaluated all factors that shape them," he said. "A methodological approach is required. For example, the rates on business loans are not very high.
"We examined international practice. They are at the same level in the neighbouring countries of Kazakhstan, Turkey and Russia. When we talk about high rates, we mainly mean consumer loans. The rates on mortgage lending which is also consumer are lower in Azerbaijan. The rate on a commercial mortgage loan is eight per cent, social mortgage is four per cent in Azerbaijan, while these are 10-12 per cent in Turkey and Russia. The interest rate on consumer loans is not so high. However, this topic is relevant in Azerbaijan."
He said the CBA will continue operating to reduce the rates.
"The discount rate has been reduced up to 4.75 per cent, while the interest rate ceiling on insured deposits up to 10 per cent. We are continuing this work within the cooperation of commercial banks in the country. The trend of reducing the rates on loans remains."