Major tendencies in different segments of monetary-credit system in August:
• The rate of manat in regard to world leading currency - US dollar got consolidated in the currency market.
• In August money mass in expanded implication (M2) and M3 grew considerably in the monetary market;
• In August the Azerbaijani banks increased crediting in economy.
• Deposit base of the Azerbaijani banks grew,
• Trading sessions on placement of T-bills were held in the stock market. The NBA continued the placement of short-term notes in the Baku Stock Exchange.
Currency market and rate of AZM
In August exchange of AZM rate grew 61 manats and dropped from 4687.00 manats to 4626 in regard to USD.
Maximal rates were fixed on 1 and 30 August. The fluctuations between maximal and minimal figures made up 61 points.
In August the exchange rate of euro dropped by 54,42 manats (5709.3 manats per euro to 5655.78 manats per euro).
Amount of currency trading sessions at BBVB in August 2005
|
Amount, in mln USD |
Rise, In August 2005 | |
|
Total, (BEST) |
$32,673 |
-22,31% |
As of totals of trading sessions in the currency section the Baku Interbank Currency exchange defined 5 leader banks in August 2005. The leader-banks of the currency exchange market were the International Bank of Azerbaijan, Bank of Baku stock-commercial bank, Rabitabank stock-investment bank, Kochbank-Azerbaijan stock-commercial bank, and Azerigasbank stock-investment bank.
|
Banks |
Share in total, % |
|
International Bank of Azerbaijan |
56.17 |
|
Bank of Baku |
11.51 |
|
Rabitabank |
10.10 |
|
Kochbank-Azerbaijan |
6.57 |
|
Azerigasbank |
4.55 |
*the data do not take into consideration the deals of the National Bank of Azerbaijan
In August 20 member-banks of the currency section participated in the auctions. They concluded 101 deals at 23 trading sessions with the total amount of 152,037bn manats, or $32,673m.
In August amount of deals with RUR and EUR made up 57,048m manats, 22.31% down. In January to August the turnover of the currency section exceeded $453m, or 36.9% down as compared to 2004.
Money market
In August monthly pace of money mass rose 2.6%, while in 2005 a cut made up 21.12%. As of 1 September 2005 money mass (M2) made up 4039.4bn manats, against 4033.4bn manats of 1 August and 3418bn manats as of 1 January 2005.
In August the amount of cash money (Рњ0) grew 1.7%, while in 2005 a drop made up 19.87%. As of 1 September M0 turned out at 2863.6bn manats against 2815.7bn manats fixed as of 1 August and 2389bn manats fixed as of 1 January 2005.
In August the amount of non-cash money grew 4.8%, drop in 2005 was equal to 24.02%. As of 1 September non-cash funds grew to 1276.7bn manats against 1217.7bn manats fixed as of 1 August and 1029bn manats fixed as of 1 January 2005.
Parameters of monetary market, in bn AZM
|
Amount, 01.09.05 |
Rise in August 2005, % | |
|
Money mass in extensive understating (Рњ3) |
9148,8 |
21,74% |
|
Money mass on AZM (Рњ2) |
4139,8 |
21,12 |
|
Cash in AZM |
2863,6 |
19,87 |
|
Non-cash money in AZM |
1276,2 |
24,02 |
Credit market
In August the Azerbaijani banks increased crediting economy by 8,266%, while it grew 22.18% in 2005.
As of 1 September 6044.4bn manats of total credits were overdue against 5582.9bn manats as of 1 August and 4947,302bn as of 1 January 2005. Overdue credits and loans comprised 287.3bn manats as of 1 September against 278.9bn manats as of 1 August and 275,271bn manats as of 1 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 3886.6bn manats (including 207.1bn manats of overdue loans) against 3588.2bn manats (including 208.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2157.8bn manats (71.8bn manats) against 2094.7bn manats (71.8bn manats) as of 1 August and 1443.4bn manats (66.6bn manats) as of 1 January 2005.
As of 1 September two public banks allocated credits for 2901.5bn manats (+14.5% in July and +28,09% in 2005), private banks вЂ" 2938.2bn manats (+3.3% in July and +30.1% for 2005). As of 1 August credit portfolio of banks with foreign capital made up 1180.6bn manats (+2.97% and +54.75% respectively), including 103.8bn manats loaned by foreign banks (+4.85% and -0.5% respectively).
As of 1 September average annual rate of banking crediting the economy comprised 15.81% in national currency against 15.97% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation rate of 1.6% in January to June, real rate was equal to 14.2%. The average annual rate on banking crediting the economy made up 17.63% in foreign currency against 18.24% as of 1 June and 18.96% as of 1 January 2005.
As of 1 September the average annual rate of banking crediting of legal entities made up 14.8% in national currency against 14.88% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 13.2%. The average annual rate of banking credit of legal entities constituted 15.91% in foreign currency against 16.56% as of 1 May and 17.12% as of 1 January 2005.
As of 1 September average annual rate on banking crediting of physical entities comprised 18.28% in national currency against 18.5% as of 1 August and 14.22% as of 1 January 2005, while real вЂ" 16.68%. Average annual rate of banking crediting of physical entities made up 21.49% in foreign currency against 21.56% as 1 August and 22.89% as of 1 January 2005.
Banking sector
In August deposit base of Azerbaijani banks dropped 4.08% due to fall in deposits of legal entities, while since the beginning of the year it dropped 22.55%. As of 1 September the total amount of bank deposits and savings of legal and physical entities made up 6282.5bn manats against 6036bn manats as of 1 August against 5126.3bn manats as of 1 January 2005. 1276.2bn manats of the total sum fell on manat reserves, while 5009.3bn manats on hard currency. In August growth of deposits in manat made up 4.8% while currency deposits fell 3.96%.
As of 1 September the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%
In August the average placement rate for 90-day credits (BakIBOR), calculated in the base applications by 16 leading commercial banks of Azerbaijan, made up 15.36% as compared to 1 September 2005 on manat credits and 18,00% on dollar credits. As a result of 8 months of 2005 BakIBOR index on manats 18%, while currency - 0.22%.
As a result of August 2005 the amount of trading sessions at credit section of the Baku Interbank Currency Exchange (BBVB) constituted 32bn manats, or 18.52% more as compared to previous month.
A total of 8 interbank credits deals were held. They all were registered during 3 auctions held by the National Bank of Azerbaijan (NBA) on placement of centralized credit resources at the credit section of the BBVB. Auction crediting rate defined by the NBA was 8.0% per annum.
As of totals of August 2005 average statutory capital of the Azerbaijani bank dropped from 27.7bn manats to 28.2bn 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 August the net of branches of the banks grew 1.65%.
As of 1 September 43 banks had had 369 branches against 363 branches of 44 banks as of 1 August against 350 branches (44 banks) as of 1 January 2005.
In August the statutory capital of banks dropped from 1135.1bn manats to 1156.1bn manats, or 1.85%, while this year the statutory capital comprised only 10%. The capital of 41 commercial banks grew in June from 995.1bn manats to 1016.1bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 September 2005, 24,78bn manats of statutory capital falls per bank in average.
The total capital of 17 banks with foreign participation grew in August from 447.8bn manats to 463.6bn manats and their share in entire statutory capital comprised 40.1%, while net foreign investments (227bn manats) comprised only 19.6% of the total sum.
Stock market
In August the Ministry of Finances held two auctions on placement of T-bills. The auction with issue of 45bn manats resulted in the placement of 28.9bn manats (64.2% of the issue). Average sustained profitability rate of the auction comprised 10.48%, or lower than the annual inflation ratio which comprised 11.6%.
No deal on T-bills was held in the secondary market.
In August the National Bank of Azerbaijan (NBA) held six auctions on placement of short-term notes. The emitter succeeded to place only 102.4bn manats (39.4% of the issue) of the total. The low interests on the notes are explained with their low profitability rate, which does not cover the annual inflation ratio. The average sustained profitability rate on the results of three June auctions comprised 8.84% per annum.
No deal was fixed in the corporate shares and bills market in August.