In Azerbaijan, restrictions are being introduced on credit cards: what will the new mechanism change?

Now citizens will not be able, as before, to uncontrollably accumulate large sums on credit cards. The Central Bank of Azerbaijan is tightening the borrowing mechanism by introducing new limits on the use of credit cards.

As reported by BAKU.WS with reference to Xəzər TV, according to the new rules, the credit card limit should not exceed five times the official income of the borrower. When calculating, their other credit obligations to banks will also be taken into account.

If a bank wants to provide a customer with a credit limit exceeding five times their income, it can only do so within 1% of its own capital. The new requirements will also directly affect banks. Thus, these restrictions provide for the protection of bank capital and timely risk assessment.

Experts believe that such measures will also encourage citizens to officially register their income.

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