Azerbaijani ministry talks implementation of plan to eliminate problem loans

Finance Materials 21 May 2019 18:14 (UTC +04:00)
Azerbaijani ministry talks implementation of plan to eliminate problem loans

Baku, Azerbaijan, May 21

By Matanat Nasibova - Trend:

The mechanism for solving the issue of problem loans has been fully developed in Azerbaijan, Azerbaijani Finance Minister Samir Sharifov told reporters in Baku May 21, Trend reports.

The work envisaged in a presidential decree by President Ilham Aliyev, continues, said the minister.

“It is expected that by the end of this month, we will fully ensure fulfillment of commitments and tasks regarding problem loans, mainly those in foreign currency,” he noted. “We have already made a tranche, and, respectively, a certain amount of funds has already entered bank accounts. All this work will be completed until May 28.”

The minister noted that the ministry receives an order for payments from the Financial Market Supervisory Authority of Azerbaijan (FIMSA), after which the funds enter bank accounts.

He said that the FIMSA also works with banks.

“The value and the number of loans is being clarified, on the basis of which the relevant work will start and the payments will be made, no problems are expected,” he noted.

Earlier, 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. The decree applies to credit loans in foreign currency worth up to $10,000.

The decree also creates opportunities for restructuring on concessional terms of both US dollar and manat loans with a delay of more than 360 days.

As part of the decree, banks will receive soft loans with a state guarantee worth up to 682 million manats for restructuring foreign currency credit loans worth up to $10,000, or 17,000 manats.

(1.7 AZN = 1 USD on May 21)