MP: Banks give loans most of all in Baku


September 24, Fineko/abc.az. Azerbaijani districts’ access to bank loans remains limited. According to the Central Bank's statistics, AZN 11.48 bn out of AZN 14.204 bn of credit investments accounts for Baku. This means that over 80% of the loan portfolio is offered in the country’s capital.

ABC.AZ was informed about this by MP Vugar Bayramov.

"The main cause of this disparity is the limited opportunities for entrepreneurs working in the districts to provide collateral, and the difference in the amount of official wages between the capital and the district is almost 2 times. In this regard, we propose to develop a new collateral mechanism to expand access to loans for entrepreneurs operating in the districts of the country, and at the same time determine differentiated rates for a number of loans, in particular for mortgage loans. For example, in the districts it is possible to apply lower interest rates on social and ordinary mortgage loans. This can increase the access of our citizens living in the districts to loans," Bayramov said.