16:02 - 15.11.2023

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November 15, Fineko/abc.az. Citizens cannot borrow from banks at low interest rates.

ABC.AZ reports that Siyavush Novruzov, the chairman of the Parliamentary Committee on Regional Issues, stated about this at today's Milli Majlis meeting when discussing the draft amendments to the Law on Banks.

The MP noted that after Azerbaijan gained independence, there were 300 private banks: "Gradually the banking system was improved, a number of banks failed, some banks were liquidated for improper operation. Today there are about 40 banks operating in our country. But too many banks can create competition. Today, the interest rates on loans that citizens can get to run medium and small businesses are high - they start at 14%. Today it is difficult to take and repay this loan. A citizen cannot withdraw large amounts of funds at all. The first issue should be the reduction of bank interests. Loans for the agricultural sector are provided at 3-7%. For other citizens, these interests should also be available. If this happens, small and medium-sized businesses will flourish. Secondly, there is a question of cooperation of banks with foreign banks. We have it at zero level. In the past, funds came from Germany and other banks so that they could be transferred to a citizen. At that time, a citizen could be given loans at low interest rates, banks also earned. Now it doesn't work. I believe the banking system is the key system of the country."