Baku, Azerbaijan, Nov. 24
By Azad Hasanli – Trend:
It is necessary to adopt a law on protection of creditors’ rights in Azerbaijan, Zakir Nuriyev, chairman of the country’s Banks Association (ABA), said Nov. 24 at the 2nd banking forum in Baku.
Nuriyev noted that this is exactly the law the development of which the banking sector expects from the Financial Market Supervisory Authority of Azerbaijan (FIMSA).
“Until such law is adopted, we will not be able to rapidly develop credit market and provide the necessary financing of the economy,” he said.
Nuriyev added that the rights of creditors should be protected in the same way as the rights of borrowers.
He reminded that at present, banks are required to write off credit debts [formed as a result of two devaluations of Azerbaijani manat in February and December 2015].
However, this approach is wrong, as it may create a precedent in the future, when bank customers will not repay debts, hoping that they will be written off again, he said.
“This is unfair to diligent borrowers, who regularly repay their debts,” he added.