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CBA: Additional regulatory steps on consumer lending will be taken by year-end

14 November 2014 08:40 (UTC +04:00)

Baku. Agshin Rafigoglu - APA-Economics. “Central Bank of Azerbaijan has taken certain regulatory steps on consumer lending. Consequently, the growth rate declined twice compared to a year earlier. Additional regulatory steps will be taken by the end of the year”, CBA Director-General Rashad Orujov told journalists, APA-Economics reports.

“We think that this will have reducing impact on consumer lending in the banks. One of main objectives of these regulatory measures is to demand conformation of personal incomes with the debt load. We think that the people’s demand should accord with their debt load. People should pay their debt conveniently. Related works are underway and certain steps will be taken by the end of the year”, Orujov said.

The Director-General noted that banks should determine customers’ monthly salary before giving loans: “We consider various versions in this regard and think that up to 50 percent is a normal index. At the same time, we require banks to obey crediting principles. First of all, banks should understand their responsibility. They must correctly assess debtors’ financial circumstances. At the same time, the borrowers also must understand their responsibilities”, Orujov said.