Azerbaijan-based banks given tasks to release real credit rates

Azerbaijan-based banks given tasks to release real credit rates
# 12 March 2013 12:23 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. Central Bank of Azerbaijan required all commercial banks to calculate real annual interest rates (RAIR) and release them in loan agreements, all advertisements, advertisement campaigns, internet resources. According to APA-Economics, CBA sent letters on it to all banks in the country.

At the same time, calculation method of RAIR was also included in the letter. According to letter, during the calculation of RAIR, the payments on basic amount of the loan, interests on loans, commission fee for loans, costs on opening of credit account and servicing, including cashing costs of loans (if applied), costs of assessment of insurance and guarantee reflected in the contract (if applied and rendered by authorized persons of the bank), other administrative cost applied by bank on each personal loan must be taken into consideration.

Note that several banks have already started to release RAIRs clearly and this index in some banks is more than 40%, 50%, even 60% depending on type and period of the loan.

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THE OPERATION IS BEING PERFORMED