Azerpost discloses amount of issued compensation payments on problem loans
By Leman Mammadova
In accordance with the presidential decree on problem loans, clients of non-bank credit organizations (NBCOs) and liquidated banks continue to receive their compensations from Azerpost LLC.
As of today, Azerpost paid 62.9 million manats ($37 million) to the clients of NBCOs and the liquidated banks.
Clients with compensations of less than 500 manats ($294) received 15 million manats ($8.8 million) in cash, and customers with compensations of more than 500 manats received 47.8 million manats ($28.13 million).
The process of presenting cards and PIN envelopes to customers in the regions was carried out until May 31.
At the next stage, starting from June 1, those who did not receive their compensation from relevant regions must obtain their cards and PIN envelopes from the Network Service Center, located at Baku International Bus Terminal.
According to the list provided by the Financial Market Supervisory Authority of Azerbaijan (FIMSA), the operation carried out by Azerpost LLC covers about 121,000 citizens.
It should be noted that the process of issuing compensations has been implemented by 91.4 percent. 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 NBCOs, and the remaining 7,000 are clients of operating banks. 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.
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.
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.
The payment of compensations for problem loans to individuals in Azerbaijan began on April 22. The payments are made through branches of banks and Azerpost postal operator.
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Leman Mammadova is AzerNews’ staff journalist, follow her on Twitter: @leman_888
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