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Overdue loans in Azerbaijan increase by over a quarter

Business Materials 6 March 2015 18:07 (UTC +04:00)

Baku, Azerbaijan, Mar. 6
By Azad Hasanli - Trend:

Azerbaijani banks increased lending to the economy by 20 percent in January 2015, compared to the same period of 2014, the Azerbaijani Central Bank (CBA) said in its report.

The banks issued loans totaling around 18.579,8 billion manats, including around 13.561,4 billion manats (73 percent) in national currency and 5.018,4 billion manats (27 percent) in freely convertible currency as of February 1, 2015, according to the CBA report.

By comparison, the figure neared 15.484,6 billion manats (around 11.140,5 billion manats in national currency and over 4.344,1 billion manats in freely convertible currency) as of 2014.

Of the total portfolio, borrowings and loans worth 1.030,9 billion manats (5.55 percent) were overdue compared to 815.1 million manats (5.3 percent) as of 2014.

The statistics of overdue loans does not include similar loans of Aqrarkredit non-banking credit institution. The share of overdue loans has increased by 26.5 percent in a year.

The volume of short-term loans amounted to 3.843,6 billion manats (including overdue loans worth 407.6 million manats) as of 2014, compared to 3.368,5 billion manats (including overdue loans worth 372.3 million manats) on the results of January 2014. The volume of short-term loans has in the economy increased by 9.5 percent in a year.

The volume of long term loans amounted to 14.736,2 billion manats (including 623,4 million manats worth overdue loans) as of February 2015, compared to 12.116,1 billion manats (including 442.8 million manats worth overdue loans) as of January 2014. The volume of long term loans has increased by 40.8 percent in a year.

The credit portfolio of the only state bank in the country, the International Bank of Azerbaijan, neared 6.391,1 billion manats with the specific weight of 34.4 percent, while private banks issued loans worth around 11.629 billion manats with a specific weight of 62.6 percent.

The remaining 3 percent fell to the share of non-bank credit organizations which issued 559.5 million manats, according to the CBA.

Currently, 45 banks operate in Azerbaijan, two of which are state-owned.

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Follow the author on Twitter: @AzadHasanli

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