12:27 - 5.11.2019

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November 5, Fineko/abc.az. The recently–made amendments will hardly change something.

ABC.AZ reports that the statement was made by expert economist Ekrem Hasanov, when commenting on the amendments made to the Rules on Regulation of Credit Risks of a Borrower or a Group of Related Borrowers by the Financial Market Supervision Authority (FIMSA).

He noted that in any case banks consider business loans more risky.

In Hasanov’s opinion, entrepreneurs need cheaper loans: "Banks do not have cheap loans. And FIMSA does not encourage the Central Bank to give cheap loans to banks. Even loans in the amount of AZN 682 million, which should be given by the presidential decree from 28 February in connection with problem loans, have not yet been given to banks.

Most importantly, consumer loans are given not only by banks, but also by non-bank credit organizations. But for some reason, FIMSA has not defined any requirements for them. Finally, the most important problem is actual loans given by retail chains to consumers under the guise of purchases on credit. That is, these networks take business loans from banks, buy goods and lend to consumers. After that, this process can intensify.

What will change as a result? Nothing!

Retail chains will take out more business loans from banks, and these loans will be considered less risky. And the networks will give actual loans to consumers, but these loans no longer fall within FIMSA’s regulation. So, "business loans" of banks will actually be consumer loans, there will just be mediators."