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CBA supports cheapening of interests in domestic market

15 November 2012 09:38 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. The Central Bank of Azerbaijan supports cheapening of interests by commercial banks, said the CB Director General Rashad Orujov: “But, it’s impossible to realize it objectively and through administrative interfere”.

Orujov noted that the issue on formation of interests had to be paid attention: “Average rate of interests are 15% and 10.1% of this is interests on involvement. Remaining part contains non-interests, administrative expenditures and bank’s profit. I don’t believe that Azerbaijan-based banks earn high profit”.

He also added that for cheapening of credits in domestic markets, the loans, which were involved, had to be cheapened and this could cause narrow of bank’s resources base: “Generally, certainly, there are high interest loans in Azerbaijan, these belong to different types of products, but this exists in world practice too”.