Mechanism of paying off problem loans to be approved soon in Azerbaijan
Baku, Azerbaijan, Mar. 15
By Sara Israfilbayova – Trend:
Mechanism of paying off problem loans in Azerbaijan is ready and will be approved soon, Yunus Abdulov, Executive Director of the Azerbaijan Banks Association (ABA), told Trend.
He further noted that the decree of the President of Azerbaijan Ilham Aliyev on additional measures in connection with solving the issue of the individuals’ problem loans will have a beneficial effect on the country's banking sector and will help increase liquidity of assets.
"This means the flow of new funds. This will allow banks to lower interest rates and issue loans for a longer period. This decree will primarily benefit citizens and the banking sector," Abdulov said.
The executive director also noted that this would contribute to the development of the country's economy as a whole.
Azerbaijani President Ilham Aliyev signed a decree on additional measures in connection with solving the issue of the individuals’ problem loans.
The decree envisages the payment of compensation to citizens whose loan burden increased as a result of the devaluation of the manat in February and December 2015.
According to the decree, opportunities are created for restructuring on concessional terms of both dollar loans and manat loans with a delay of more than 360 days.
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