Azerbaijan's credit organizations provide benefits to customers affected by pandemic

(MENAFN- Trend News Agency) By Fidan Babayeva – Trend:

The credit organizations that are members of the Azerbaijan Micro-finance Association (AMFA) have begun to provide benefits to their clients affected by the consequences of the coronavirus pandemic, a source in AMFA told Trend on June 16.

'The benefits are issued by banks and non-bank credit organizations (NBCO), which are AMFA's members,' the source added. 'Among the benefits are the non-accrual of penal interest for overdue loans, restructuring of loans, as well as benefits in other spheres.'

'Executive Credit Bureau NBCO, TBC Kredit LLC, KredAqro NBCO, Viator Mikrokredit, Pasha Bank, Bank of Baku OJSC, Ideal Credit NBCO, Finoko NBCO have suspended the accrual of interest on overdue loans to customers who have delays in loan commitments during the Covid-19 pandemic,' the source said. 'The grace periods are applied, the contract is extended and restructured in accordance with the appeals of the clients.'

Taking into account the recommendations of the Central Bank of Azerbaijan, KredAqro began to provide its customers with a number of benefits up to September 30. KredAqro offers the following benefits:

1) a penalty for delaying payments on loans from March 1 is not imposed (for loans without delay for more than 30 days);

2) restructuring through writing off the fines by using privileges on the main debt within 1-3 months;

3) restructuring with an extension of the term to reduce the monthly payment depending on the amount of the loan on the main debt by writing off the fines. At the same time, the term of loans worth up to 500 manat ($294) may be extended up to three months, worth 500-3,000 manat ($294-$1,764) - up to six months, worth more than 3,000 manat ($1,764) - up to 12 months.

'PASHA Bank proposed a number of preferential offers to the customers to support the business during the COVID-19 pandemic,' the message said. 'These offers include interest-free loans and card renewal. The penalties have been suspended for customers with overdue loans.'

'Moreover, all cards that expired in March and April were automatically renewed for three months since April 1, 2020,' the message said. 'The bank provided customers with POS-terminal tariffs and benefits on a number of commissions.'

According to the data, Bank of Baku did not stop lending to the clients involved in micro, small and medium-sized businesses over these months. More than 400 entrepreneurs received the loans worth about four million manat ($2.3 million).

Ideal Kredit LLC decided to restructure loan debts worth more than 200,000 manat ($117,647). At the same time, dozens of borrowers received extra time to make monthly payments.


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