When pensions are delayed: "Extra interest is added to loans, and electricity, water, gas… are cut off"

For several months now, there have reportedly been delays in the disbursement of pensions and social payments in Azerbaijan. Pensioners say that the delays range from three to five days. For example, they emphasize that while disability pensions used to be paid by the 15th of each month earlier in the year, for the past three months, payments have been made on the 20th or 21st.

Some citizens say that this situation causes them difficulties.

Könül Ahmadova, a resident of Baku who receives an age-based pension, stated that her monthly pension is 360 manat: “A large part of it goes to medication. I budget my pension for my monthly expenses. As soon as the pension is delayed, I am left without medicine for a few days. We pensioners don’t receive that much money, so why delay it? Or does the money run out when it comes to us?”

There have been complaints about pension delays in Azerbaijan before. It is said that in the 1990s, pension delays in some regions stretched out for months. At that time, the country did not receive substantial oil revenues. Today, however, it is reported that the country’s foreign currency reserves stand at around $70 billion. According to figures from January to September this year, the State Social Protection Fund’s (SSPF) revenues amounted to 5.111 billion manat, 3% or 158 million manat higher than the forecast. SSPF’s expenditures in January-September reached 5.147 billion manat, which is 13% or 612 million manat more than in the same period last year.

However, the SSPF claimed to "Turan" that there are no delays in pension and benefit payments: "Pensions are issued monthly. Just like in previous months, this month’s pension payments have also been transferred to citizens’ bank cards without any delays."

It was noted that according to the schedule, pension payments for Baku, Sumgait, and the Absheron region are made between the 8th and 15th of each month. For other regions and those who receive pensions under preferential terms, payments are planned between the 20th and 28th of each month: “Citizens are informed in advance of the dates when social payments will be credited to bank cards.”

Economist Rashad Hasanov told Radio Azadliq that if there is a problem, it is not due to a lack of funds in this institution’s budget: “When we look at the revenues of the State Social Protection Fund, we see that revenues are increasing and exceeding the forecast. When we look at the state budget, we also see a surplus. This allows us to conclude that the issue is not related to a lack of funds.”

The economist believes the delays are due to technical issues: “This could be related to reporting. It could be that the Treasury’s regulations have changed.”

He emphasizes that the regulations allow institutions to maneuver within certain limits: “For example, expressions like ‘within the first 10 days of the month’ or ‘within the last 10 days of the month’ provide flexibility to make payments within a two- to three-day margin. It may be that the administrators see this as a simple issue and that it’s not a matter of concern because they live in different circumstances.”

However, Hasanov noted, it is essential to consider that this concerns a large social group – more than 1.1 million pensioners and 600-700 thousand other social benefit recipients: “Most of them are low-income and vulnerable social groups, and the planning of all family incomes is based on payments from the state. Delays in making these payments on time have consequences: extra interest is added to loans, and utility services like electricity, water, gas, and internet are cut off when bills aren’t paid on time. In short, people are left in a difficult situation.”