Rufat Aslanli: "If Banks Cannot Get Their Money Back, They Can Expect Fate of Bank Standard

Banks torture people, and we receive a large number of complaints on this issue, said MP Ali Masimli at a meeting of the Parliamentary Committee on Economic Policy, Industry and Enterprise.

The MP stressed that the payment of loans increased after the devaluation.

"There are clients who took a loan of $ 9,300 and paid part of the sum. However, after the devaluation the bank told him that he must pay an additional 14,000 AZN. It turns out that the customer is to pay 23,000 AZN over the loan of $ 9,300. The Financial Markets Supervision House (FMSH) should be at the side of the population, rather than on the side of the banks."

His point of view is not accepted by the FMSH Board of Directors Chairman Rufat Aslanli, who said the commercial banks of Azerbaijan have problems with the implementation of the obligations in foreign currency.

"Before the devaluation the share of foreign currency loans accounted for 47% of bank loans. After two devaluations the volume of these loans has doubled in manat terms. Therefore, there are problems with their repayment. Banks carried out this lending not from their own resources," he said:

Aslanli noted that credit investments make up 16 billion manat, which was raised from the population and at the expense of deposits for business.

"80% of deposits are placed in foreign currency. If banks cannot get their money back, they can expect the fate of Bank Standard. We prevented the growth of the problem by limiting the dollar credit," said the head of FMSH.

Referring to uninsured deposits, Aslanli said they knowingly signed this.

"In Bank Standard 20% per annum in foreign currency was paid for a children’s deposit. It is clear that it is impossible to establish the value of such scope. From the very beginning it is clear that a deposit of 20% per annum will be gone,” he said. ------71B