BAKU, Azerbaijan, April 13
By Fidan Babayeva - Trend:
Operational preventive measures were promptly taken by the Azerbaijani government, executive director of the Azerbaijan Micro-Finance Association (AMFA) Jhale Hajiyeva told Trend.
“The operational preventive measures taken by the Azerbaijani government to minimize the negative impact of coronavirus (COVID-19) and the decrease in oil prices on the country's socio-economic situation, business and employment, as well as the creation of the Action Plan to implement the item 10.2 of the presidential decree #1950 dated March 19, 2020, made it possible to provide citizens from the most vulnerable groups of the population during this difficult period with continuous activity in the sectors directly or indirectly affected by pandemics," Hajiyeva added.
"The microfinance sector was also affected as coronavirus pandemic and the subsequent sharp fluctuations in the global energy and stock markets negatively affected the Azerbaijani economy, employment issues in the country and business entities," the executive director said.
“The pandemic may lead to a sharp reduction in the non-bank credit organizations’ (NBCOs) loan portfolio and business volumes in the future as it coincides with seasonal activity,” Hajiyeva added. “As COVID-19 virus affects micro and small entrepreneurs, NBCOs must assess the negative impact on the business of the clients they deal with, both directly and indirectly, and concentrate on the effective risk management.”
“In case of prolongation or tightening of the special quarantine regime, NBCOs will face the problems with making tax and social payments, paying salaries, funds raised by banks and others,” the executive director said.
"We would like to stress that the list of organizations envisaging the possibility of fulfilling official duties in the organizations operating during the special quarantine regime allowed the NBCOs to ensure uninterrupted financing of the activity of small agricultural producers, suppliers and carriers since March 31, 2020," Hajiyeva added.
----
Follow the author on Twitter: Fidan_Babaeva
