The Azerbaijani government can help borrowers with foreign currency loans, the head of the Association of Banks of the country Zakir Nuriyev stated.
The government has already received proposals to cover the difference created by the recalculation of payments on foreign currency loans by banks in accordance with the new rate, at the expense of the Central Bank of Azerbaijan (CBA). This is possible by means of 3 billion manats, formed as a result of the revaluation of the foreign exchange reserves of the Central Bank after the devaluation of the manat.
"It was requested to direct these funds to cover the arising difference for borrowers of foreign currency loans. The Association welcomes this decision. In such cases, the main problem is to determine the source of compensation to the population, in order not to burden the state budget with additional costs. But if there is such a source in the form of the CBA, then I think the state should use it. After that, banks can resort to restructuring loans, increasing the term of their repayment, lowering interest rates and so on," Trend quotes Nuriyev as saying.
