Central Bank Of Azerbaijan Makes Regulatory Changes Regarding Loans
Date
10/12/2023 6:09:40 AM
(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 12. The Central Bank
of Azerbaijan (CBA) has made regulatory changes related to lending
to the real sector, the CBA told Trend .
According to the amendments, project finance loans that meet
special criteria to stimulate financing of large projects by banks
are considered fully secured loans. It is established that the
periodicity of interest payments on these loans corresponds to the
terms of the respective project. With these changes, the reserve
burden on project finance loans will be adjusted, and these types
of loans will be excluded from the concentration limit on unsecured
loans.
The precautionary requirements for the borrower's debt burden
for clean car financing loans are also relaxed, and the
requirements for manufacturing, commercial, and other special
equipment acting as collateral for business loans are relaxed.
And in consumer loans, there is a possibility to restructure
borrowers for whom the debt-to-income ratio cannot be temporarily
determined (in particular, people who have lost their jobs). At the
same time, strict classification requirements have been established
to minimize bank credit risks.
"Overall, the recent regulatory reforms are projected to ensure
that funds from the banking sector play an effective role in
economic growth by reinforcing the principles of responsible
borrowing and healthy lending," the CBA added.
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