Azerbaijan, Baku, 11 June / Trend A.Akhundov /
The Central Bank of Azerbaijan has instructed the country's banks to provide customers with accurate information about the interest rate on their loans, CBA deputy chairman Khagani Abdullayev told Trend.
"Banks are required to provide accurate information on the effective interest rate, that is not only indicate the rate on the loan, but also inform the customers about the cost of a loan along with the tariffs for the bank's services. We have warned the banks about it," Abdullayev said.
According to him, the banks have begun to fulfill these requirements, and this trend is increasing.
As reported earlier, the Central Bank is working on changes to be introduced to the advertising law and the Civil Code of Azerbaijan.
As the Chairman Elman Rustamov said earlier, these measures are implemented to ensure that the 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 percent. The effective rate reaches 40 percent per annum.
The average rate for the entire portfolio of consumer loans including mortgages and car loans last year amounted to 18.25 percent compared to 19.06 percent in 2011.
