Credit unions of Azerbaijan want to attract deposits
Baku, Azerbaijan, June 15
By Anvar Mammadov - Trend:
The Azerbaijan Credit Unions Association (AKIA) is still seeking financing sources, the Chairman of AKIA Jalil Suleymanov told Trend June 14.
Suleymanov noted that previously the main source of financing for credit unions in the country were loans provided by the National Fund for Entrepreneurship Support (NFES), the State Committee of Azerbaijan Republic for Refugees and Internally Displaced Persons Affairs, and the Ministry of Agriculture, but now the issuance of financing is suspended.
"As a result, a total of 38 credit unions operate in full force in the country today, and they operate at the expense of own funds. At the same time, it should be taken into account that banks do not want to work in remote rural areas, and the people of those zones have access to loans only with the help of credit unions," Suleymanov said.
According to him, AKIA appealed to the said bodies for the resumption of funding, but has not yet received answers. Another possible option, as Suleymanov noted, may be the possibility of attracting deposits.
"As you know, according to the current legislation, adopted 15 years ago, credit unions cannot attract deposits. We appealed to the Financial Market Supervisory Authority of Azerbaijan with a proposal to amend the legislation. There is no answer yet, but we hope this step will help credit institutions to lend more actively to small businesses in the regions," Suleymanov said.