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Expansion of non-cash payments in Azerbaijan may lead to lower interest rates

1 March 2019 10:48 (UTC+04:00)
Expansion of non-cash payments in Azerbaijan may lead to lower interest rates

By Trend

Interest rates may decrease in Azerbaijan thanks to the full transition to non-cash payments, Chairman of the Azerbaijan Banks Association (ABA) Zakir Nuriyev said at an event in Baku dedicated to non-cash payments, Trend reports Feb. 28.

He said that the State Program for the Expansion of Digital Payments for 2018-2020, unlike all previous programs, is the most improved of all the previous ones.

“The main task here is to increase the volume of non-cash payments in Azerbaijan and minimize the amount of cash payments,” said Nuriyev.

He noted that this provides the banking sector with access to financial resources, and this may contribute to lower interest rates of banks.

“These measures will help to achieve progress in the economy and, at the same time, improve the social condition of the population,” he added.

He also noted that the increase in non-cash transactions indicates an increase in banks’ incomes, and this in turn helps reduce the cost of services provided by credit institutions.

Nuriyev noted that Azerbaijan’s banks are taking steps to reduce the cost of services for citizens, as well as to reduce interest rates. Nuriyev said that these measures will continue this year as well.

In 2018, the volume of non-cash payments through Azerbaijan’s national payment system reached 274 billion manats, which is 32 percent more compared to the figures from the previous year.

The turnover of payment cards stood at 16 billion manats last year. Of it, 13 billion fell to cash withdrawals, and 2.8 billion manats to non-cash operations.

Non-cash transactions make up 17 percent of all operations with payment cards. In 2017, this figure equaled 10.2 percent.

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