Issuing problem loans compensations exceeds 90%
By Mirsaid Ibrahimzade
Azerbaijan is actively working to solve the issues of concern associated with problem loans.
Financial Market Supervisory Authority of Azerbaijan (FIMSA) has informed that the process of issuing compensations carried out in accordance with the decree by President Ilham Aliyev “On additional measures to resolve problem loans of individuals in Azerbaijan”, has been implemented by 91.4 percent.
FIMSA stated that 95.5 percent of individuals out of the total number of the citizens entitled to the compensation (602,347 people) received compensations.
Individuals who have not applied due to various reasons as being outside the country, death, etc. amounted to 27,500 citizens, 20,500 of which are clients of liquidated banks and non-bank credit organizations, and the remaining 7,000 are clients of operating banks.
According to the financial regulator, persons who have not received compensation before May 31 may apply to their banks and the national postal operator, providing necessary documents for receiving the compensation.
According to FIMSA, Chamber of the Appeals Committee is considering and will process approximately 13,000 applications of citizens on the principle of reservation.
The payment process carried out by the Azerbaijani Finance Ministry amounted to 600.1 million manats ($353 million).
Overdue loans made up 288.8 million manats ($169.88 million) and the remaining funds of 311.3 were transferred to citizens' cards.
As part of the decree, 107 million manats ($62.94 million) were sent to repay debts on credit interest and penalties from over 126,000 debtors who are clients of banks and non-bank credit organizations.
It is noteworthy that in order to ensure the transparency of the process, 685,000 citizens made 1.7 million requests on the electronic portal created by FIMSA.
The total number of views on this portal made up about 3 million. 966 call centers received more than 117,000 calls.
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 aimed at improving the welfare of the population is an important element of the social policy. That’s because the solution of the problem of credit loans of the population won’t only ease the financial burden, but will also restore confidence in the banking sector and free some debtors from legal proceedings.
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Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1
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