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Azerbaijani banks call for reducing reserve rates for loans

Business Materials 11 December 2017 20:16 (UTC +04:00)

Baku, Azerbaijan, Dec. 11

By Azad Hasanli – Trend:

Banks in Azerbaijan call for reducing the reserve rates for loans, a source in the banking sector said Dec.11.

Local bankers met with representatives of the Financial Market Supervisory Authority and the Association of Banks at the office of YapiKredi Azerbaijan last week. During the meeting, the bankers made a proposal to free "problem borrowers" from taxes. This would ease the financial situation for customers who borrowed funds, and simplify debt repayment.

The source said that another proposal voiced during the meeting was associated with reducing reserve rates for loans.

"This issue can be considered both separately and within the so-called "Baku Approach", which the Financial Market Supervisory Authority is currently developing," the source said.

The "Baku Approach" provides for comprehensive measures to deal with problem loans, including restructuring and facilitating credit terms.

The source said that, over the past two years, banks have restructured a large number of loans, but they implemented these measures separately, and it did not give desired result as a whole. Therefore, it was decided to implement comprehensive measures and for this purpose banks can create a consortium, as it was, for example, in Turkey within the "Istanbul Approach" in early 2000s.

There are 31 banks in Azerbaijan, including two state-owned banks.

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