CBA sets to require more transparency for consumer loans

The Central Bank of Azerbaijan (CBA) has prepared documentation for banks concerning their justification of interest rates on consumer loans, the CBA chairman Elman Rustamov said on Friday.

In accordance with these requirements, the data on interest rates will be reflected in more detailed and transparent way.

Rustamov explained these measures are implemented to ensure banks do not make use of the population's financial illiteracy and provide them with complete and transparent information substantiating the real interest rate on the loans provided.

Today, banks provide financial services to citizens at an average rate of 28-32 per cent. The effective rate reaches 40 per cent per annum.

The average rate for the entire portfolio of consumer loans including mortgages and car loans, last year amounted to 18.25 per cent compared to 19.06 per cent in 2011.


/Trend/