Process of issuing compensation for problem loans in Azerbaijan implemented by 91.4%

As of May 31, 2019, the process of issuing compensations carried out in accordance with the decree by President Ilham Aliyev “On additional measures to resolve problem loans of individuals in Azerbaijan”, has been implemented by 91.4 percent, Trend reports referring to information provided by Financial Market Supervisory Authority of Azerbaijan (FIMSA).

According to FIMSA, 95.5 percent of individuals out of the total number of the citizens entitled to to the compensation (602,347 people) have received it. Citizens who have not yet applied for the compensation for various reasons (persons outside the country, deceased, etc.) amounted to 27,500 citizens, 20,500 of which are clients of liquidated banks and non-bank credit organizations, and the remaining 7,000 are clients of operating banks.

According to the financial regulator, persons who have not received compensation before May 31 may apply to their banks and the national postal operator, providing necessary documents for receiving the compensation.

FIMSA also noted that about 13,000 applications of citizens are being considered and will processed by the Chamber of the Appeals Committee on the principle of reservation.

The payment process was carried out in six tranches by the Azerbaijani Finance Ministry in the amount of 600.1 million manats. Of the funds allocated, 288.8 million manats were directed to overdue loans, while the remaining amount of 311.3 million manats was transferred to citizens’ cards.

As part of the decree, 107 million manats were sent to repay debts on credit interest and penalties from over 126,000 debtors who are clients of banks and non-bank credit organizations.

In order to expedite the execution of the decree and the transparency of the process, 685,000 citizens made 1.7 million requests on the electronic portal created by FIMSA. The total number of views on this portal made up about 3 million. More than 117,000 calls were received from 966 call centers.