Compensation on problem loans, according to a decree by Azerbaijani President Ilham Aliyev on additional measures in connection with the resolution of the issue of problem loans of individuals, will be credited to special accounts, said Natig Amirov, assistant to the President of Azerbaijan on economic policy and industry issues, Trend reports with reference to the AzTV channel.
Amirov noted that if the compensation amount isn’t enough to pay off the loan debt, the rest of the loan will be restructured at lower interest rates (one percent per annum).
He also stressed that this decree has both social and economic significance.
“Issues related to problem loans started from the end of 2014 - beginning of 2015, due to the decline in oil prices in global markets,” he said. “These issues have always been in the center of attention of President Ilham Aliyev.”
He noted that there are more than 311,000 court cases on loans worth 616 million manats.
President of Azerbaijan Ilham Aliyev on Feb. 28 signed a decree on additional measures in connection with solving the issue of problem loans of individuals.
The decree provides for the payment of compensation to citizens whose credit burden increased as a result of the devaluation of the manat in February and December 2015. The decree also creates opportunities for restructuring on concessional terms of both the US dollar and manat loans with a delay of more than 360 days.
Follow us on Twitter @AzerNewsAz