“Azerbaijani banks will provide their customers with unemployment insurance services on a mandatory basis.”
elchi reports, citing “Report”, that this was stated by the Director General of the Central Bank of Azerbaijan (CBA), Shahin Mahmudzada, at a press conference held regarding the institution’s semi-annual “Financial Stability Report”.
“For individuals taking out consumer loans, the use of this service will be voluntary,” he noted.
The CBA official said that regulations on unemployment insurance have been prepared:
“Work is also underway on regulatory changes in this area, and they are expected to come into force by the end of the year. This insurance will help protect individuals from risks related to unemployment. Cases such as voluntary resignation or mass layoffs will also be included in the insurance coverage within the relevant regulations. Thus, unemployment insurance for consumer loans will be a tool to reduce the financial difficulties that individuals who have taken out loans may face in case they become unemployed. Whether to obtain insurance or not depends on the customer’s own choice.”