Litigation on the debts of the population will be terminated, expert says

  • 17:12 28 February 2019

Litigation on the debts of the population will be terminated, expert says

President of Azerbaijan Ilham Aliyev has today signed a Decree on additional measures in connection with the resolution of the issue of  troubled loans of individuals.

Chairman of the Center for Economic and Social Development (CESD) Vugar Bayramov tol ONA that the decree of the head of state, which has been discussed for a long time, will lead to the solution of social problems that worry the population.

According to him, the decree will cover hundreds of thousands of people. According to this document, individuals who have taken a loan in foreign currency will be able to take advantage of benefits that apply to loans of up to 10 thousand US dollars.

“They will take two periods as a basis: loans taken from January 1, 2012 to February 21, 2015, that is, the period before the first devaluation. For example, if a citizen took a loan in the amount of 10,000 US dollars during this period, which at that time was 7,800 manat, and after the devaluation, already 10,500 manat. Taking into account the rate of 0.25 manat for 1 US dollar, the amount of 2,500 manat will be deducted from this amount, which is almost equal to the amount of the loan, which he took before the devaluation”, - he said.

According to V. Bayramov, the second stage will cover the period from February 21 to December 21, 2015, that is, the gap between the first and second devaluations. For loans taken during this period, a rate of 0.6 manat will be applied.

“This means that for every 10,000 US dollars, a benefit in the amount of 6,000 manat will be applied,” said the chairman of the Center.

V. Bayramov said that the maximum amount of benefits will not exceed 5 thousand US dollars.

“To pay the remaining part of the debt, banks will issue soft loans for five years. In this case, the annual rate will be one percent. To this end, the Central Bank will pay 682 million manat to commercial banks. At the same time, additional interest and penalties counted by banks will be canceled. Litigation on the debts of the population will also be terminated. A presidential decree will fundamentally solve the problem of problem loans. This should be evaluated as a serious step to strengthen the social security of the population, ”the expert said.

Narmina Javid

Faig Mahmudov