11:02 - 26.11.2024

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November 26, Fineko/abc.az. The Board of the Central Bank of Azerbaijan (CBA) has endorsed the Procedure for managing credit risks in non-bank credit institutions.

ABC.AZ informs that CBA chairman Taleh Kazimov signed the relevant decision.

Under the decision, the following requirements are defined for daily loans given by NBCOs:

- given in the national currency;

- the maximum amount - 500 manats;

- the maximum daily interest rate - 0.3%;

- the repayment term - a maximum of 45 days;

- in case of delayed payments, interest or late payment penalties should not exceed 2-fold the interest rate applied daily to the amount of the principal debt;

- the total amount of all loan payments should not exceed 100% of the principal amount;

- interests on the principal debt should not be accrued for a period of more than 30 days when applying interests for late payment or penalties;

- immovable or movable property is not a pledge;

- not restructured.

The NBCO should have appropriate rules and an information system to monitor credit risks.

The CBA Legal Department is tasked to submit a new decision to the Ministry of Justice within three days for entry into the State Register of Legal Acts.