Azerbaijan can establish credit guarantee fund

Baku. 31 May. REPORT.AZ/ Azerbaijan needs a law aimed at protection of creditors rights.

Report informs, Chairman of Azerbaijan Banks Association (ABA) Zakir Nuriyev told reporters.

Moreover, according to him, a credit guarantee fund for bank loans also must be created in the country: “This fund should take part of responsibility for annual interest rates of loans. Currently, banks attract AZN deposits with 15% annual rate. The self-cost of loans, taking into account risks, makes 24-25%. It is hard to release loans for small and medium size enterprises with such a high rate, that’s why we need a guarantee fund”.