Baku, Azerbaijan, Aug. 22
By Azad Hasanli – Trend:
Azerbaijan’s non-banking credit organizations (NBCOs) managed to stabilize the collection process of the previously issued loans, said Jalal Aliyev, financial expert, a member of the Board of Azerbaijan Microfinance Association (AMFA).
Following two devaluations of the manat [in February and December 2015] in Azerbaijan, volumes of problem loans began to grow. Both customers of banks and the NBCOs had experienced such a situation. As a result, many financial institutions began to reduce the volume of lending and became more cautious about issuing new loans.
At present, the NBCOs should concentrate their efforts in two directions: switch to the most profitable spheres of lending and concentrate on the collection of previously issued loans, he said.
“Today one can say that the NBCOs managed to stabilize the loan collection process to some extent. Nevertheless, they still have some difficulties in attracting additional funds for lending,” the expert noted. “Unlike banks, NBCOs cannot attract deposits, their options are limited, and so they are forced to look for investors both in Azerbaijan and abroad.”