15:41 - 29.04.2022
April 29, Fineko/abc.az. “One of the most discussed issues in recent days is that interest rates on loans are still high. Despite a slight reduction in deposit rates, loans are still offered expensively,” ABC.AZ reports with reference to MP Vugar Bayramov as writing this in his social network account.
"According to the Central Bank, the loan portfolio currently amounts to AZN 18.7 bn. The CBA estimates that the average loan interest around the country is 11.86%, and in the national currency 14.28%. What is the reason for the high interest rate on the loan? What should I do to cut interests? Although the high cost of loans is conditioned with the high level of profitability in the real sector, weak competition in the banking sector is one of the main reasons. The experience of developed countries shows that the reduction of interest rates on loans directly leads to increased competition between banks. However, high interest rates on deposits in Azerbaijan also lead to an increase in loans. But, nevertheless, loan interests in some cases exceed deposit interests almost 2-fold," he emphasized.
