Azerbaijan can begin to regulate interest rates on loans

By  Trend

Azerbaijan’s Financial Market Supervisory Authority (FIMSA) may start regulating the upper levels of interest rates on loans, a source in the Azerbaijani Parliament told Trend.

This is provided for by the amendments to the Law On Banks, which was discussed today by Azerbaijani MPs at a meeting of the Parliamentary Committee on Economic Policy, Industry and Entrepreneurship.

As stated in the parliament, a decision could be made to optimize the cost of loans and protect the rights of borrowers.

The changes will also allow FIMSA to regulate bank commission rates and other services.

According to the Central Bank of Azerbaijan, the average interest rates on loans in Azerbaijan by late January 2019 made up 14.4 percent for manat loans and 7.89 percent for loans in foreign currency.

Rates for loans to individuals in manats amounted to 17.34 percent, and to 14.55 percent in for loans in foreign currency. The rates for legal entities amounted to 9.31 and 5.95 percent, respectively.