Procedure for paying compensations for problem loans established in Azerbaijan
Baku, Azerbaijan, April 2
By Azad Hasanli – Trend:
A mechanism has been developed in Azerbaijan for the payment of compensations for individuals whose credit load increased as a result of the 2015 devaluations, and the procedure for applying for overdue loans has been defined, Trend reports.
The corresponding document is posted on a special portal of the Financial Market Supervisory Authority of Azerbaijan (FIMSA).
The order determines how and where individuals can receive their compensation. In particular, it is noted that individuals will be able to receive compensation from banks which they are customers of. However, customers of non-bank credit institutions or banks that are in the process of liquidation will be able to receive compensation at branches of the postal operator.
If the amount of compensation exceeds 500 manats, then these funds will be transferred to the account of the individual; if less, the payment will be made via money transfer.
The corresponding plastic cards which will be received by individuals are issued for a period of 1 year and are free of charge. Banks and postal operator are not entitled to charge a fee for issuing or conducting operations with these cards or for making money transfers.
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.