Issuance of compensation for problem loans in Azerbaijan to start soon
Baku, Azerbaijan, March 28
By Sara Israfilbayova - Trend:
It is planned to start paying compensation under the decree of President Ilham Aliyev on additional measures in connection with the resolution of the issue of problem loans to individuals by the end of April, Elshan Allahverdiyev, spokesman for the Financial Market Supervisory Authority of Azerbaijan (FIMSA), said at the presentation of the portal on compensation and restructuring of problem loans to individuals, Trend reports.
"If a citizen is a client of a functioning bank, he will receive a message from this bank regarding compensation, and if a citizen is a client of a non-bank credit organization or a bank in the process of liquidation, he will receive a notification by mail," said Tural Feyzullayev, head of the legal department of the FIMSA.
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.
Also, as part of the decree, banks will receive preferential loans under a state guarantee in the amount of up to 682 million manats as part of the decree.
The banks will be provided with securities worth up to 215 million manats with an annual interest rate of 0.5 percent through the issued loan to prevent deterioration of the currency position of banks.
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