According to him, this led to confrontation between the population and the financial institutions: “Consequently, we saw a weakening in the quality of portfolio, the sector faced loss. This resulted in decline in number of customers and in assets. At that time, a slow economic growth was observed. But now, we see positive economic growth as a result of taken steps and successful policy. This was particularly towards the development of the non-oil sector. In early 2016, the FIMSA was established, which was aiming to ensure stability in the sector. The FIMSA started to take normalization measures in connection with the microfinance institutions. The financial institutions which were unhealthy were removed from the sector”.
Zulfugarov added that there are currently 123 non-banking credit institutions in the sector, which are now operating on loss: “We expect the FIMSA to achieve its goals by the year-end. We have to pay attention to increase of sustainability in the next year”.