Volume of microfinance market exceeds $ 1.4 billion in Azerbaijan

Photo: Volume of microfinance market exceeds $ 1.4 billion in Azerbaijan / Economy news

Baku, Azerbaijan, May 6
By Emin Aliyev - Trend:

The total volume of the microfinance portfolio of credit organizations is about 1.12 billion manats in Azerbaijan, the executive director of the Azerbaijan Microfinance Association Jala Hajiyeva said.

"As of the Q1, 2014, the customer base in this market reached 573,000 people. In total, some 4.7 percent of the Azerbaijani population uses microfinance services," she said.

At present, microloans are now considered the loans of up to 16,000 manats, according to the executive director.

"Herewith, until 2008, this rate stood at 10,000 manats. Its rise is due to both the inflationary processes, and overall economic growth of the national economy over the past years. An average loan issued to one borrower by the non-bank credit organizations is $1,289. For comparison, the figure is average $4,230 in commercial banks. At the same time, the smaller the amount of the issued loan, the higher the associated costs of the credit institution. The maintenance costs of microcredit averages $ 239 per borrower in the country," Hajiyeva said.

The Azerbaijani Microfinance Association includes 35 structures, including commercial banks, non-banking credit organizations, credit unions, insurance, leasing and other companies.

The official exchange rate on May 6 is 0.7843 AZN / USD.

Translated by S.I.
Edited by C.N.

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