Azerbaijan's microfinance market to double
In the near future, Azerbaijani microfinance market may double, Head of the National Confederation of Entrepreneurs (Employers) of Azerbaijan (NCEA) Mammad Musayev said during a speech at the Investors Fair in Baku.
"To date, the loan portfolio of microfinance institutions reach $1 billion, and in the near future it may grow by one billion," he said.
In turn, executive director of the Azerbaijan Microfinance Association (organizer of the fair) Jala Hajiyeva, today the number of clients of microfinance organizations in Azerbaijan amounts to 530, 000 people.
"The introduction by the Central Bank of Azerbaijan in early 2013 of the requirements on the application of the actual Annual Percentage Rate (APR) will improve the competitive environment in the banking sector, as a result of which ultimately the customers will benefit," she said.
Chairman of the Azerbaijan Microfinance Association Suleyman Kalyashev said that the decision of the Central Bank to lower the cost of the query to the Central Credit Register was also positive for the market.
"With the global economic crisis in 2008, which affected the microfinance market, Azerbaijan continued to develop. If 10 years ago microfinance institutions had a portfolio of $12 million, now it reaches $1 billion. About one per cent of the total loan portfolio of the market is under the risk," he said.