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Azerbaijani banks increase lending to economy by more than 20 percent

Business Materials 5 August 2014 16:31 (UTC +04:00)

Baku, Azerbaijan, Aug. 5

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Azerbaijani banks increased lending to the economy by 21.64 percent in January-June 2014 compared to the same period of 2013, according to the Azerbaijani Central Bank's report as of the first six months of 2014.

The banks delivered loans totaling 16.754.8 billion manat including 12.228.3 billion manat (73 percent) in national currency and 4.526.5 billion manat (27 percent) in freely convertible currency for the reporting period.

For comparison, the figure was equal to 13.774.1 billion manat (9.750.3 billion manat in national currency and 4.023.8 billion manat in freely convertible currency) in January-June 2013.

Of the total portfolio, loans worth 877.6 million manat (5.24 percent) were overdue compared to 781.8 million manat (5.67 percent) as of January-June 2013. Statistics of overdue loans does not include similar loans of the non-banking credit institution Aqrarkredit. Overdue loans increased by 12.2 percent during a year.

Short term loans amounted to 3.530.3 billion manat (including overdue loans worth 378.7 million manat) compared to 3.240.1 billion manat (including overdue loans worth 363.9 million manat as of January-June 2013. The volume of short term loans in the economy increased by 9 percent during a year.

As of January-June 2014, the volume of long term loans amounted to 13.224.5 billion manat including 498.9 million manat in overdue loans compared to 10.534 billion manat including 417.9 million manat of overdue loans as of June 2013. The long term loans increased by 25.5 percent during a year.

The credit portfolio of the only state bank in the country, the International Bank of Azerbaijan, hit 5.785.2 billion manat with a specific weight of 34.5 percent, while private banks issued loans worth 10.499.7 billion manat with a specific weight of 62.7 percent. The remaining 2.8 percent fell to the share of non-bank credit organizations. They issued 469.8 million manat, according to the CBA.

Some 44 banks operate in Azerbaijan.

The official exchange rate is 0,7843 AZN/USD on Aug. 5.

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