Baku, Azerbaijan, Mar.16
By Azad Hasanli - Trend:
Azerbaijan needs to develop microsavings standards, the chairman of the board of EmbaFinans Ltd. Ilgar Tagiyev said.
"Coefficient of over-indebtedness among the Azerbaijani population is high enough," Tagiyev told Trend March 16. "We notice it among our customers as well. There are people who have seven loans in different banks. As financial professionals, we have to explain to the public not the effectiveness of attracting the loan, but how to save money."
As the head of the company said, there were no credit standards earlier in Azerbaijan, but now they are well developed.
"For example, every year the company Embawood sells furniture in the amount of 100 million manats, which is quite a serious figure," he said. "About 60-70 percent of this amount is paid through our ["EmbaFinans"] loans and this figure is constantly growing. Given the fact that we provide free credit for buying furniture [interest is paid by the furniture company], even those people who can afford to buy furniture for cash, get it on credit."
The official exchange rate on March 16 is 1. 0487 AZN / USD.
He said that new technologies appeared today, it became easier to get a loan, and it is even possible to draw it in the online mode. "But people need to understand that one cannot take all in credit, one needs to save money," he said. "And our [credit institutions] goal is not to earn money from the interests and eventually destroy the client, it is important to offer the market socially responsible products."
Microsavings are deposition services, which allow the population with low incomes to save money in small volumes for future use. Microsavings allow families to save up money to cover unforeseen expenses and plan for future investments.
Non-bank credit organization EmbaFinans operates in Azerbaijan since 2012. The company has its offices in all districts and cities of the country. The client base of the non-bank credit organization includes more than 65,000 people.
As of March 1, credit portfolio of EmbaFinans is 25 million manats, assets - 32 million manats, the authorized capital - 10 million manats, total capital - 13 million manats.
edited by CN
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