(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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