Banks sent to us a letter with loan obligation - Ibrahim Alyshov


November 14, Fineko/abc.az. Banks committed themselves to allocate part of the funds paid to banks on the basis of the presidential decree on solving problem debts in Azerbaijan.

ABC.AZ reports that the statement was made by Ibrahim Alyshov, acting head of the Financial Markets Supervision Authority (FIMSA) at the forum "Transparency in access to financial markets of small & medium-sized businesses: the current state & prospects", held on 14 November.

FIMSA head noted that as a result of the execution of the historic order of country’s leader, AZN 630 million were allocated for State Budget compensation, including AZN 320 million designed for citizens and AZN 209 million for banks.

"In addition, AZN 490 million will be allocated for the restructuring of overdue loans, including more than AZN 100 million allocated by the Central Bank to banks. In the same period, in April, a joint memorandum was signed between FIMSA, Azerbaijan Banks Association and KOBIA. The purpose of the Memorandum is that we have received from each bank a strategic commitment to direct these funds, that is, funds allocated by the state, directly for the development of small and medium-sized businesses. The letter clearly says in which direction the banks will allocate the funds they will receive. According to the Memo, banks will allocate 58% of funds for small and medium-sized businesses, 23% for micro-businesses, and 19% for large businesses. We believe that the transfer of these funds to the relevant structures has already begun," he underlined.