TODAY.AZ / Business

How much funds Azerbaijan allocates for compensation payment on problem loans?

20 May 2019 [14:35] - TODAY.AZ

By Trend

Azerbaijan has allocated 700 million manats for compensation payment on problem loans in the country, said Vusalya Jafarova, manager for strategic analysis and planning of the Center for Analysis of Economic Reforms and Communications, Trend reports.

According to Jafarova, the allocation of this amount served to improve the social life of the Azerbaijani population and positively impacted the banking sector. This distinguishes the Azerbaijani model from other models in the CIS countries, as well as from global models, she noted.

In her words, the decree on additional measures in connection with solving the issue of the individuals’ problem loans covered more than 800,000 citizens, which makes 90 percent of problem loans in foreign currency.

Jafarova stressed that addressing the issue of problem loans is a part of systemic social reforms.

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 20)


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