Finance minister: Mechanism of paying off problem loans prepared in Azerbaijan

14 March 2019 16:29 (UTC+04:00)

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A mechanism of paying off problem loans has been prepared in Azerbaijan, Azerbaijani Finance Minister Samir Sharifov said, Trend reports.

The minister stressed that the work, envisaged upon Azerbaijani President Ilham Aliyev’s decree, is being carried out in connection with the problem loans.

Sharifov added that the Financial Market Supervisory Authority of Azerbaijan (FIMSA) works with banks in this sphere.

"The volume and number of loans is being clarified, on the basis of which the corresponding work will start and payments will be made,” he said. “The financing mechanism is almost ready, no problems are foreseen."

“A hotline has been created in the Finance Ministry,” he added. “All major issues have already been resolved.”

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.

The banks will also 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.

(1.7 AZN = 1 USD on March 14)

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