Entrepreneurs complain to Elman Rustamov about high credit interest rates


January 13, Fineko/abc.az. Representatives of banks and entrepreneurs held a meeting with the Central Bank's management last week.

ABC.AZ reports that the meeting participants raised problems concerning high interest rates and collateral for obtaining loans from banks.

Touching upon the matter, Mammad Musayev, the president of the Azerbaijan Entrepreneurs’ Confederation (ASK) pointed out that at the end of last year ASK conducted a poll among entrepreneurs and a significant number of entrepreneurs said that there are certain proposals to mitigate the existing credit interest and conditions. He noted that the main difficulty in obtaining loans by persons engaged in business activities in districts is related to the collateral system: "The recognition of houses and land in districts as real estate and as collateral is not fully implemented.

Entrepreneurs can not use the system of pledge of movable property. An indicator of this is that the ratio of private sector loans to GDP in Azerbaijan is very low compared with Europe and neighboring countries. According to the World Bank’s report, in neighboring Georgia this figure makes up 62.6%, in Russia 75.9%, and in Azerbaijan only 20.8%."