Azerbaijani banks may get tax privileges

Business Materials 1 March 2018 20:43 (UTC +04:00)

Baku, Azerbaijan, March 1

By Ilkin Shafiyev – Trend:

The Azerbaijan Banks Association (ABA) intends to discuss the introduction of tax privileges for the banking sector with entrepreneurs and representatives of state organizations, ABA chairman Zakir Nuriyev told Trend March 1.

"We plan to discuss this issue jointly with the National Confederation of Entrepreneurs, businessmen, bankers, insurers and other representatives of the financial sector," he said. “If negotiations are held, I think we will be able to make a common decision. In any case, active work is being carried out in this direction.”

Nuriyev has not specified exemption from which taxes is planned to be discussed.

Earlier, a source in banking circles told Trend that Azerbaijani banks offer to exempt those clients, who can not repay their credit debts, from taxes. The banks are planned to be exempted from the payment of taxes.

The source said that the matter rests in temporary or complete exemption from payment of taxes for the period of repayment of credit debts. At the same time, the source has not specified the taxes from which banks and borrowers are expected to be exempted.

According to the Central Bank of Azerbaijan, the country's credit institutions reduced the amount of the issued loans by 28.5 percent up to 11,757.8 million manats in 2017 compared to 2016.

The amount of overdue loans for the year increased by 10.5 percent up to 1,626.7 million manats. The share of overdue loans in the loan portfolio of banks and non-bank credit organizations was 13.8 percent.

(1.7001 AZN = $1 on March 1)