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Problem loans to find a solution and banks to have an additional opportunity

Problem loans to find a solution and banks to have an additional opportunity
Experts deem problem loans can be returned by dividing them equally among the three sides

"One of the issues of concern to our people is associated with problem loans. This issue has been discussed for a long time. Government members have received appropriate instructions. Since last year, very active work has been underway and a package of proposals is being prepared. President of the Republic of Azerbaijan Ilham Aliyev made remarks at a meeting on economic and social issues on February 25.
According to him, this issue is being discussed in the Milli Majlis. Various suggestions have been made: "Of course, we wanted this issue to provoke a serious public debate, and we succeeded in that. However, I can say that a working group is seriously dealing with this issue at the final stage. For more than two months, work has been under way on proposals. This is not an easy question. In addressing this issue, we see the main task in improving the well-being of our people and reducing their financial burden. This should first of all be perceived as a serious social initiative. I can say that the serious discussions held over several months already create the conditions for achieving a result. I hope that we are in the final stage of this analysis. I do hope that this issue will also be resolved in the near future and Azerbaijan will demonstrate its leadership in addressing this issue and show a very serious example. We know that some countries have made relevant decisions related to such steps, but they have not been implemented. So the main condition here is not a good intent, but a correct analysis and selection of the most acceptable option for our people. Of course, the first question is whether we have enough financial resources to do this. Today I simply want to announce that this issue is already in its final stages.
Economist Ramin Rahimov shared his views on this issue. According to him, each bank may approach individually towards its client and make some concessions: "The issue is about the US dollar loansş The principal target is to reduce people's load. At the moment, the division of the problem loans  among  the three sides seems to be the ideal option.Without question , the above mentioned  mechanism will significantly reduce the load  on clients. Moreove it is impossible to say whether this step will have a positive impact on the development of the banking sector or not. The current issue of the banking sector is not related to problem loans. The issue is that  to what extend population, especially entrepreneurs are interested in taking out  loans today. First of all, a  bank should determine which sector belongs  the client with a problem loan. It should be clarified that the problem arises from the area the customer belongs or not.Banks will be able to make  individual discounts to  customer based on such analyzes." he added.

Lawyer, expert on bank issues Akram Hasanov says that if the issue over  small sized  problem loans is solved, banks will be able to get solution to  medium and large sized loans too: "There is still no concrete mechanism for problem loans. In my view,  the step is not going to cover all the problem loans.  Most likely this will include US dollar loans and loans to a certain amount. Therefore, this is not a big deal in the total loan portfolio. However,  small sized loans  of citizens are much more than others. This issue has been an additional matter for banks. It was difficult to work with the problem loans. Sueing  the court, spending extra money  and so on takes time. But if these small-sized problem loans are resolved, it will enable banks to spend their time and resources on larger volumes and suceed thier payment." Hasanov stressed. 

Economist Vugar Bayramov said "Kaspi” newspaper that  the analysis carried out by the Center for Economic and Social Development shows that problem loans are one of the most serious drawbacks concerning citizens: "This issue  was expressed by the head of state  at the meeting too. In the near future, we will witness the steps addressing problem loans. The government is more interested in applying the American model.  The model plans to take problem  loans on the market and to give preferences to citizens. As well as, it covers giving concessions to citizens as in the Russian model.  The model includes the extension of payment date, decrease the amount of monthly payments, and so on." Vugar Bayramov said. 
Gunel Azade  



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