Baku, Azerbaijan, March 13
By Ilkin Shafiyev - Trend:
A new approach needs to be developed in Azerbaijan for fixing bad loans, Azerbaijani MP Rufat Guliyev told Trend.
Here much will depend on agreements between creditors and borrowers, according to him.
"It is necessary to develop a single policy to minimize interest rate on bad loans, and simultaneously apply an individual approach to borrowers. The volume of bad loans is quite high today. The problem will not be resolved if banks demand loans from borrowers at the same interest rate, which they were issued several years ago," Guliyev said.
He said that this issue can be discussed at the forthcoming session of the Azerbaijani parliament.
Furthermore, he said that the problem can not be solved only by introducing amendments to the legislation.
According to the Central Bank of Azerbaijan, in 2017 the country's credit institutions reduced the volume of the issued loans by 28.5 percent compared to 2016, up to 11 757.8 million manats.
The volume of overdue loans over the year increased by 10.5 percent up to 1 626.7 million manats. Their share in the loan portfolio of banks and non-bank credit organizations was 13.8 percent.