The Azerbaijani government allocated 670,000 manats to pay compensations on problem loans to individuals in Pasha Bank, chief financial administrator, as well as member of the board of the bank Bahruz Naghiyev said.
Naghiyev made the remarks in Baku at the conference dedicated to the results of the bank’s activity in 2018, Trend reports on May 21.
“The amount of compensations is not so high because being a corporate bank, Pasha Bank more focuses on rendering services to small and medium-sized businesses (SMEs) compared to other banks,” he added. “The bank has not issued many loans to the individuals.”
Commenting on such a low volume of problem loans, Naghiyev said that this was stipulated by the successful work of the bank’s loan management department as the bank’s strategy is aimed at issuing loans in foreign currency to those whose income is registered in the same currency.
The process of paying compensation on problem loans to individuals started in Azerbaijan on April 22, 2019. The payments are made through branches of banks and Azerpost postal operator. As expected, 602,347 people will receive compensation. The compensation is planned to be fully paid till late May 2019.
Earlier, President 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 both US dollar loans and manat loans with a delay of more than 360 days on concessional terms. If the amount of compensation exceeds 500 manats, these funds are transferred to the account of the individual; otherwise, the payment is made via money transfer.
The corresponding plastic cards to be received by individuals are issued free of charge for a period of one year. Banks and postal operator are not entitled to charge fees for issuing or conducting operations with these cards or for making money transfers.
(1.7 AZN = 1 USD on May 21)
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