MONETARY-CREDIT SECTOR

In April the exchange of AZM rate grew 49 manats and dropped from 4807 manats to 4858 in regard to USD.

Maximal rates were fixed on 3 and 31 May. The fluctuations between maximal and minimal figures made up 51 points.

In May the exchange rate of euro dropped by 280,93 manats (6181,56 manats per euro to 5900,63 manats per euro). The monthly minimum rates were fixed at 5900.63 EUR/AzM on 31 Amy and the monthly maximum rates of 6226.7 EUR/AzM was achieved on 4 May (the difference was 326,07 points).

Amount of currency trading sessions at BBVB in May 2005

As of totals of reading sessions in the currency section the Baku Interbank Currency exchange defined 5 leader banks in April 2005. The leader-banks of the currency exchange market were the International Bank of Azerbaijan (21.69%), Rabitabank stock-investment bank (12.1%), Azerigasbank stock-investment bank (10.24), Amrahbank commercial bank (9.05%), and Respublika stock-commercial bank (6.3%).

In May 25 member-banks of the currency section participated in the auctions. They concluded 114 deals at 21 trading sessions with the total amount of127,326bn manats, or $26,648m.

In May deals with RUR made up 1,885 manats, or 1.7% down as compared to April.The amount of trading sessions dropped 23 times.

Exchange rate of AZM in regard to US dollar grew 1%, 48,63 points - from 4805 to 4756 manats per USD. Respectively, in May the average sustained rate of AZM comprised 4778,07 manats per US $1, whereas in April it was fixed at 4834,48 manats.

Leader banks on currency operations at BICEX

Leader banks on currency operations at BICEX

Amount of currency trading sessions at BBVB in May 2005

As of totals of reading sessions in the currency section the Baku Interbank Currency exchange defined 5 leader banks in April 2005. The leader-banks of the currency exchange market were the International Bank of Azerbaijan (21.69%), Rabitabank stock-investment bank (12.1%), Azerigasbank stock-investment bank (10.24), Amrahbank commercial bank (9.05%), and Respublika stock-commercial bank (6.3%).

In May 25 member-banks of the currency section participated in the auctions. They concluded 114 deals at 21 trading sessions with the total amount of127,326bn manats, or $26,648m.

In May deals with RUR made up 1,885 manats, or 1.7% down as compared to April.The amount of trading sessions dropped 23 times.

Exchange rate of AZM in regard to US dollar grew 1%, 48,63 points - from 4805 to 4756 manats per USD. Respectively, in May the average sustained rate of AZM comprised 4778,07 manats per US $1, whereas in April it was fixed at 4834,48 manats.

Leader banks on currency operations at BICEX

Leader banks on currency operations at BICEX

In May the exchange rate of euro dropped by 280,93 manats (6181,56 manats per euro to 5900,63 manats per euro). The monthly minimum rates were fixed at 5900.63 EUR/AzM on 31 Amy and the monthly maximum rates of 6226.7 EUR/AzM was achieved on 4 May (the difference was 326,07 points).

Amount of currency trading sessions at BBVB in May 2005

As of totals of reading sessions in the currency section the Baku Interbank Currency exchange defined 5 leader banks in April 2005. The leader-banks of the currency exchange market were the International Bank of Azerbaijan (21.69%), Rabitabank stock-investment bank (12.1%), Azerigasbank stock-investment bank (10.24), Amrahbank commercial bank (9.05%), and Respublika stock-commercial bank (6.3%).

In May 25 member-banks of the currency section participated in the auctions. They concluded 114 deals at 21 trading sessions with the total amount of127,326bn manats, or $26,648m.

In May deals with RUR made up 1,885 manats, or 1.7% down as compared to April.The amount of trading sessions dropped 23 times.

Exchange rate of AZM in regard to US dollar grew 1%, 48,63 points - from 4805 to 4756 manats per USD. Respectively, in May the average sustained rate of AZM comprised 4778,07 manats per US $1, whereas in April it was fixed at 4834,48 manats.

Leader banks on currency operations at BICEX

Leader banks on currency operations at BICEX

Amount of currency trading sessions at BBVB in May 2005

As of totals of reading sessions in the currency section the Baku Interbank Currency exchange defined 5 leader banks in April 2005. The leader-banks of the currency exchange market were the International Bank of Azerbaijan (21.69%), Rabitabank stock-investment bank (12.1%), Azerigasbank stock-investment bank (10.24), Amrahbank commercial bank (9.05%), and Respublika stock-commercial bank (6.3%).

In May 25 member-banks of the currency section participated in the auctions. They concluded 114 deals at 21 trading sessions with the total amount of127,326bn manats, or $26,648m.

In May deals with RUR made up 1,885 manats, or 1.7% down as compared to April.The amount of trading sessions dropped 23 times.

Exchange rate of AZM in regard to US dollar grew 1%, 48,63 points - from 4805 to 4756 manats per USD. Respectively, in May the average sustained rate of AZM comprised 4778,07 manats per US $1, whereas in April it was fixed at 4834,48 manats.

Leader banks on currency operations at BICEX

Leader banks on currency operations at BICEX

Money market

In May monthly pace of money mass rose 7.4%, while in 2005 a cut made up 6.3%. As of 1 June 2005 money mass (M2) made up 3631.8bn manats, against 3381.8bn manats of 1 May and 3418bn manats as of 1 January 2005.

In May the amount of cash money (Рњ0) grew 5,85%, while in 2005 a drop made up 4,203%. As of 1 June M0 turned out at 2489.4bn manats against 2351.8bn manats fixed as of 1 May and 2389bn manats fixed as of 1 January 2005.

In May the amount of non-cash money grew 10,913%, drop in 2005 was equal to 11,02%. As of 1 June non-cash funds grew to 1142.4bn manats against 1030bn manats fixed as of 1 May and 1029bn manats fixed as of 1 January 2005.

Parameters of monetary market, in bn AZM

Net international reserves and international assets, in bn manats

Credit market

In May the Azerbaijani banks increased crediting economy by 1,149%, while it grew 12.666% in 2005.

As of 1 June the banks allotted 5573,947bn manats worth of credits against 5491.97bn manats as of 1 May and 4947,302bn manats as of 1 January 2005.

As of 1 June 264.7bn manats of total credits were overdue against 255.6bn manats as of 1 May and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3663.5bn manats (including 197.9bn manats of overdue loans) against 3657.8bn manats (including 191.1bn manats of overdue loan) as of 1 May and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 1910.5bn manats (66.8bn manats) against 1834.2bn manats (64.3bn manats) as of 1 May and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

Field structure of credit investments, in %

As of 1 June two state banks approved credit in the amount of 2488,323bn manats (+1,666% in May and +9,85% in 2005), private banks 2657,61bn manats (+2,75% in May and +17,696% in 2005).

As of 1 May credit portfolio of banks with foreign capital made up 951.5bn manats (+3,03% and +9,054% respectively), including 95.9bn manats loaned by foreign banks (+5.5% and -9,054% respectively). As of 1 June credit organizations allocated 428,014bn manats.

As of 1 June average annual rate of banking crediting the economy comprised 15.74% in national currency against 18.43% as of 1 May and 15.55% as of 1 January 2005. With consideration of inflation in January to May, real rate was equal to 8.94%. The average annual rate on banking crediting the economy made up 18.43% in foreign currency against 18.49% as of 1 May and 18.96% as of 1 January 2005.

As of 1 June the average annual rate of banking crediting of legal entities made up 15.17% in national currency against 15.95% as of 1 May and 16.06% as of 1 January 2005, while real rates вЂ" 8.37%. The average annual rate of banking credit of legal entities constituted 16.81% in foreign currency against 16.87% as of 1 May and 17.12% as of 1 January 2005.

As of 1 June average annual rate on banking crediting of physical entities comprised 17.27% in national currency against 16.96% as of 1 May and 14.22% as of 1 January 2005, while real вЂ" 10.47%. Average annual rate of banking crediting of physical entities made up 21,75% in foreign currency against 21.96% as 1 May and 22.89% as of 1 January 2005 and 22.24% as of 1 January 2004.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

Field structure of credit investments, in %

As of 1 June two state banks approved credit in the amount of 2488,323bn manats (+1,666% in May and +9,85% in 2005), private banks 2657,61bn manats (+2,75% in May and +17,696% in 2005).

As of 1 May credit portfolio of banks with foreign capital made up 951.5bn manats (+3,03% and +9,054% respectively), including 95.9bn manats loaned by foreign banks (+5.5% and -9,054% respectively). As of 1 June credit organizations allocated 428,014bn manats.

As of 1 June average annual rate of banking crediting the economy comprised 15.74% in national currency against 18.43% as of 1 May and 15.55% as of 1 January 2005. With consideration of inflation in January to May, real rate was equal to 8.94%. The average annual rate on banking crediting the economy made up 18.43% in foreign currency against 18.49% as of 1 May and 18.96% as of 1 January 2005.

As of 1 June the average annual rate of banking crediting of legal entities made up 15.17% in national currency against 15.95% as of 1 May and 16.06% as of 1 January 2005, while real rates вЂ" 8.37%. The average annual rate of banking credit of legal entities constituted 16.81% in foreign currency against 16.87% as of 1 May and 17.12% as of 1 January 2005.

As of 1 June average annual rate on banking crediting of physical entities comprised 17.27% in national currency against 16.96% as of 1 May and 14.22% as of 1 January 2005, while real вЂ" 10.47%. Average annual rate of banking crediting of physical entities made up 21,75% in foreign currency against 21.96% as 1 May and 22.89% as of 1 January 2005 and 22.24% as of 1 January 2004.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of 1 June 264.7bn manats of total credits were overdue against 255.6bn manats as of 1 May and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3663.5bn manats (including 197.9bn manats of overdue loans) against 3657.8bn manats (including 191.1bn manats of overdue loan) as of 1 May and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 1910.5bn manats (66.8bn manats) against 1834.2bn manats (64.3bn manats) as of 1 May and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

Field structure of credit investments, in %

As of 1 June two state banks approved credit in the amount of 2488,323bn manats (+1,666% in May and +9,85% in 2005), private banks 2657,61bn manats (+2,75% in May and +17,696% in 2005).

As of 1 May credit portfolio of banks with foreign capital made up 951.5bn manats (+3,03% and +9,054% respectively), including 95.9bn manats loaned by foreign banks (+5.5% and -9,054% respectively). As of 1 June credit organizations allocated 428,014bn manats.

As of 1 June average annual rate of banking crediting the economy comprised 15.74% in national currency against 18.43% as of 1 May and 15.55% as of 1 January 2005. With consideration of inflation in January to May, real rate was equal to 8.94%. The average annual rate on banking crediting the economy made up 18.43% in foreign currency against 18.49% as of 1 May and 18.96% as of 1 January 2005.

As of 1 June the average annual rate of banking crediting of legal entities made up 15.17% in national currency against 15.95% as of 1 May and 16.06% as of 1 January 2005, while real rates вЂ" 8.37%. The average annual rate of banking credit of legal entities constituted 16.81% in foreign currency against 16.87% as of 1 May and 17.12% as of 1 January 2005.

As of 1 June average annual rate on banking crediting of physical entities comprised 17.27% in national currency against 16.96% as of 1 May and 14.22% as of 1 January 2005, while real вЂ" 10.47%. Average annual rate of banking crediting of physical entities made up 21,75% in foreign currency against 21.96% as 1 May and 22.89% as of 1 January 2005 and 22.24% as of 1 January 2004.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

Field structure of credit investments, in %

As of 1 June two state banks approved credit in the amount of 2488,323bn manats (+1,666% in May and +9,85% in 2005), private banks 2657,61bn manats (+2,75% in May and +17,696% in 2005).

As of 1 May credit portfolio of banks with foreign capital made up 951.5bn manats (+3,03% and +9,054% respectively), including 95.9bn manats loaned by foreign banks (+5.5% and -9,054% respectively). As of 1 June credit organizations allocated 428,014bn manats.

As of 1 June average annual rate of banking crediting the economy comprised 15.74% in national currency against 18.43% as of 1 May and 15.55% as of 1 January 2005. With consideration of inflation in January to May, real rate was equal to 8.94%. The average annual rate on banking crediting the economy made up 18.43% in foreign currency against 18.49% as of 1 May and 18.96% as of 1 January 2005.

As of 1 June the average annual rate of banking crediting of legal entities made up 15.17% in national currency against 15.95% as of 1 May and 16.06% as of 1 January 2005, while real rates вЂ" 8.37%. The average annual rate of banking credit of legal entities constituted 16.81% in foreign currency against 16.87% as of 1 May and 17.12% as of 1 January 2005.

As of 1 June average annual rate on banking crediting of physical entities comprised 17.27% in national currency against 16.96% as of 1 May and 14.22% as of 1 January 2005, while real вЂ" 10.47%. Average annual rate of banking crediting of physical entities made up 21,75% in foreign currency against 21.96% as 1 May and 22.89% as of 1 January 2005 and 22.24% as of 1 January 2004.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

Parameters of monetary market, in bn AZM

Net international reserves and international assets, in bn manats

Credit market

In May the Azerbaijani banks increased crediting economy by 1,149%, while it grew 12.666% in 2005.

As of 1 June the banks allotted 5573,947bn manats worth of credits against 5491.97bn manats as of 1 May and 4947,302bn manats as of 1 January 2005.

As of 1 June 264.7bn manats of total credits were overdue against 255.6bn manats as of 1 May and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3663.5bn manats (including 197.9bn manats of overdue loans) against 3657.8bn manats (including 191.1bn manats of overdue loan) as of 1 May and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 1910.5bn manats (66.8bn manats) against 1834.2bn manats (64.3bn manats) as of 1 May and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

Field structure of credit investments, in %

As of 1 June two state banks approved credit in the amount of 2488,323bn manats (+1,666% in May and +9,85% in 2005), private banks 2657,61bn manats (+2,75% in May and +17,696% in 2005).

As of 1 May credit portfolio of banks with foreign capital made up 951.5bn manats (+3,03% and +9,054% respectively), including 95.9bn manats loaned by foreign banks (+5.5% and -9,054% respectively). As of 1 June credit organizations allocated 428,014bn manats.

As of 1 June average annual rate of banking crediting the economy comprised 15.74% in national currency against 18.43% as of 1 May and 15.55% as of 1 January 2005. With consideration of inflation in January to May, real rate was equal to 8.94%. The average annual rate on banking crediting the economy made up 18.43% in foreign currency against 18.49% as of 1 May and 18.96% as of 1 January 2005.

As of 1 June the average annual rate of banking crediting of legal entities made up 15.17% in national currency against 15.95% as of 1 May and 16.06% as of 1 January 2005, while real rates вЂ" 8.37%. The average annual rate of banking credit of legal entities constituted 16.81% in foreign currency against 16.87% as of 1 May and 17.12% as of 1 January 2005.

As of 1 June average annual rate on banking crediting of physical entities comprised 17.27% in national currency against 16.96% as of 1 May and 14.22% as of 1 January 2005, while real вЂ" 10.47%. Average annual rate of banking crediting of physical entities made up 21,75% in foreign currency against 21.96% as 1 May and 22.89% as of 1 January 2005 and 22.24% as of 1 January 2004.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

Field structure of credit investments, in %

As of 1 June two state banks approved credit in the amount of 2488,323bn manats (+1,666% in May and +9,85% in 2005), private banks 2657,61bn manats (+2,75% in May and +17,696% in 2005).

As of 1 May credit portfolio of banks with foreign capital made up 951.5bn manats (+3,03% and +9,054% respectively), including 95.9bn manats loaned by foreign banks (+5.5% and -9,054% respectively). As of 1 June credit organizations allocated 428,014bn manats.

As of 1 June average annual rate of banking crediting the economy comprised 15.74% in national currency against 18.43% as of 1 May and 15.55% as of 1 January 2005. With consideration of inflation in January to May, real rate was equal to 8.94%. The average annual rate on banking crediting the economy made up 18.43% in foreign currency against 18.49% as of 1 May and 18.96% as of 1 January 2005.

As of 1 June the average annual rate of banking crediting of legal entities made up 15.17% in national currency against 15.95% as of 1 May and 16.06% as of 1 January 2005, while real rates вЂ" 8.37%. The average annual rate of banking credit of legal entities constituted 16.81% in foreign currency against 16.87% as of 1 May and 17.12% as of 1 January 2005.

As of 1 June average annual rate on banking crediting of physical entities comprised 17.27% in national currency against 16.96% as of 1 May and 14.22% as of 1 January 2005, while real вЂ" 10.47%. Average annual rate of banking crediting of physical entities made up 21,75% in foreign currency against 21.96% as 1 May and 22.89% as of 1 January 2005 and 22.24% as of 1 January 2004.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of 1 June 264.7bn manats of total credits were overdue against 255.6bn manats as of 1 May and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3663.5bn manats (including 197.9bn manats of overdue loans) against 3657.8bn manats (including 191.1bn manats of overdue loan) as of 1 May and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 1910.5bn manats (66.8bn manats) against 1834.2bn manats (64.3bn manats) as of 1 May and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

Field structure of credit investments, in %

As of 1 June two state banks approved credit in the amount of 2488,323bn manats (+1,666% in May and +9,85% in 2005), private banks 2657,61bn manats (+2,75% in May and +17,696% in 2005).

As of 1 May credit portfolio of banks with foreign capital made up 951.5bn manats (+3,03% and +9,054% respectively), including 95.9bn manats loaned by foreign banks (+5.5% and -9,054% respectively). As of 1 June credit organizations allocated 428,014bn manats.

As of 1 June average annual rate of banking crediting the economy comprised 15.74% in national currency against 18.43% as of 1 May and 15.55% as of 1 January 2005. With consideration of inflation in January to May, real rate was equal to 8.94%. The average annual rate on banking crediting the economy made up 18.43% in foreign currency against 18.49% as of 1 May and 18.96% as of 1 January 2005.

As of 1 June the average annual rate of banking crediting of legal entities made up 15.17% in national currency against 15.95% as of 1 May and 16.06% as of 1 January 2005, while real rates вЂ" 8.37%. The average annual rate of banking credit of legal entities constituted 16.81% in foreign currency against 16.87% as of 1 May and 17.12% as of 1 January 2005.

As of 1 June average annual rate on banking crediting of physical entities comprised 17.27% in national currency against 16.96% as of 1 May and 14.22% as of 1 January 2005, while real вЂ" 10.47%. Average annual rate of banking crediting of physical entities made up 21,75% in foreign currency against 21.96% as 1 May and 22.89% as of 1 January 2005 and 22.24% as of 1 January 2004.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

Field structure of credit investments, in %

As of 1 June two state banks approved credit in the amount of 2488,323bn manats (+1,666% in May and +9,85% in 2005), private banks 2657,61bn manats (+2,75% in May and +17,696% in 2005).

As of 1 May credit portfolio of banks with foreign capital made up 951.5bn manats (+3,03% and +9,054% respectively), including 95.9bn manats loaned by foreign banks (+5.5% and -9,054% respectively). As of 1 June credit organizations allocated 428,014bn manats.

As of 1 June average annual rate of banking crediting the economy comprised 15.74% in national currency against 18.43% as of 1 May and 15.55% as of 1 January 2005. With consideration of inflation in January to May, real rate was equal to 8.94%. The average annual rate on banking crediting the economy made up 18.43% in foreign currency against 18.49% as of 1 May and 18.96% as of 1 January 2005.

As of 1 June the average annual rate of banking crediting of legal entities made up 15.17% in national currency against 15.95% as of 1 May and 16.06% as of 1 January 2005, while real rates вЂ" 8.37%. The average annual rate of banking credit of legal entities constituted 16.81% in foreign currency against 16.87% as of 1 May and 17.12% as of 1 January 2005.

As of 1 June average annual rate on banking crediting of physical entities comprised 17.27% in national currency against 16.96% as of 1 May and 14.22% as of 1 January 2005, while real вЂ" 10.47%. Average annual rate of banking crediting of physical entities made up 21,75% in foreign currency against 21.96% as 1 May and 22.89% as of 1 January 2005 and 22.24% as of 1 January 2004.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

20 deals with one borrowing of 29,015bn manats was held at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST. Interbank crediting in the OICM made up 11.16 per annum.

Banking sector

In May deposit base of Azerbaijani banks dropped 4.135% due to fall in deposits of legal entities, while since the beginning of the year it dropped 12,642%. As of 1 June the total amount of bank deposits and savings of legal and physical entities made up 5774.4bn manats against 5545.1bn manats as of 1 May against 5126.3bn manats as of 1 January 2005. 1142.4bn manats of the total sum fell on manat reserves, while 4632bn manats on hard currency. In April growth of deposits in manat made up 10.9% while currency deposits fell 2,589%.

As of 1 June the amount of savings and deposits of physical entities grew to 2124,8bn manats against 2105.2bn manats as of 1 May and 2015.6bn manats as of 1 January 2005. As of 1 June the amount of deposits of legal entities made up 3649.6bn manats against 3439.9bn manats a of 1 May and 3110.7bn manats as of 1 January 2005.

As of 1 June 196.7bn manats (+7,545%) of savings and deposits of physical entities was implemented in national currency, while 1928bn manats (+0,296%) in hard currency. 945.7bn manats of deposits of legal entities (+11.639%) were implemented in manats, while 2704bn manats (+4,288%) вЂ" in hard currency.

As of 1 June the average rate of bank deposits in the national currency comprised 7.54% against 7.31% as of 1 May and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 1.74% in January to May. The average rate of banking deposit in hard currency constituted 9.8% against 9.77% as of 1 June and 9.43% as of 1 January 2005.

As of 1 May the average rate of bank deposits of legal entities in the national currency comprised 6.53% against 6.45% as of 1 April and 5.89% as of 1 January 2005, while real rate was - 0.27%. The average rate of banking deposit of corporate client in hard currency is 6.47% against 6.46% as of 1 April and 5.58% as of 1 January 2005.

As of 1 June the average rate of bank deposits of physical entities in the national currency comprised 9.59% against 9.07% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 1.79%. The average rate of banking deposit of individual client in hard currency is 10.31% against 10.33% as of 1 May and 10.53% as of 1 January 2005.

Status of attracted resources as of 1 June, 2004

11 deals with the total amount of 12,677bn manats at average annual rate of 12.6% were registered at the Organized Interbank Credit Market functioning on BEST trade system. Over the 5 months of 2005 BakIBOR in manat grew 1.63%, while in currency 1.11%.

As of 1 June 2005 BakIBOR in manats comprised 14.77% per annum, credits in US dollar 17.2% per annum.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.

As of totals of April 2005 average statutory capital of the Azerbaijani bank dropped from 25.3bn manats to 25.9bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In May the net of branches of the banks grew 0.28%.

As of 1 June 42 banks had had 357 branches against 356 branches of 42 banks as of 1 May against 350 branches (44 banks) as of 1 January 2005.

In May the statutory capital of banks dropped from 1060.5bn manats 1086.6bn manats ($228,469%), or 2.46%, while this year the statutory capital comprised only 3.387%. The capital of 40 commercial banks grew in April from 920.5bn manats to 946.6bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 June 2005 23,665bn manats of statutory capital falls per bank in average.

The total capital of 15 banks with foreign participation grew in May from 378.1bn manats to 388.6bn manats and their share in entire statutory capital comprised 35.8%, while net foreign investments (180.9bn manats) comprised only 16.6% of the total sum.

Stock market

In May the Finances Ministry held to auctions on placement of T-bills. The first auction with issue of 25bn manats resulted in the placement of 7.8bn manats (31.% of the issue). Average sustained profitability rate of the auction comprised 10.53%. The second effective auction was held with the issue of 20bn manats, which resulted in the placement of 19.5bn manats (97.5% of the issue). Average sustained profitability rate of the auction comprised 10.96%.

In January to April the National Bank of Azerbaijan has placed 40.6bn manats. Average sustained profitability of rate of five auctions comprised 8.1%.

No trading session was held at the corporate bonds market.