Payment of compensations for problem loans starts in Azerbaijan (UPDATE)

Finance Materials 19 April 2019 18:59 (UTC +04:00)
The payment of compensations for problem loans in Azerbaijan will begin on April 22, 2019.

Details added (first version published at 18:25)

Baku, Azerbaijan, April 19

By Azad Hasanli – Trend:

The payment of compensations for problem loans in Azerbaijan will begin on April 22, 2019, Trend reports referring to a joint statement by the Ministry of Finance and the Financial Market Supervisory Authority (FIMSA).

As noted, 602,347 people will receive compensation.

Given the large number of persons who will receive compensation, the Ministry of Finance, with the approval of FIMSA, will gradually transfer funds to the accounts of credit institutions.

The transfer of funds has already begun, with the funds being transferred to the accounts of credit organizations that are in the process of the liquidation of banks and the national postal operator Azerpost at the Central Bank, as well as the accounts of existing non-bank credit organizations (along with those currently undergoing liquidation) at Azerpost.

All payments are to be completed due May 2019.

Azerbaijani President Ilham Aliyev earlier 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 US dollar loans and manat loans with a delay of more than 360 days.

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.