Baku, Azerbaijan, Dec. 6
By Anvar Mammadov - Trend:
The share of non-performing loans in the total loan portfolio of Azerbaijani banks amounted to 7.01 percent (1.302 billion manat) in January-October 2015, a report of the Central Bank of Azerbaijan (CBA) for the first ten months of 2015 said.
The volume of bad loans reduced by 3.83 percent in October compared to September.
In general, the volume of bad loans increased by 38 percent in January-October 2015 compared to the same period of last year and 33.35 percent compared to early 2015.
For comparison, the index was 943.4 million manat (5.29 percent) in January-October 2014.
The statistics of non-performing loans does not include similar loans of Aqrarkredit non-banking credit institution.
The number of bad loans is growing in Azerbaijan.
Azerbaijani banks increased the consumer lending volume by 4.06 percent in January-October 2015 compared to the same period of 2014.
The consumer lending volume decreased by 2.86 percent in October compared to September.
According to the report, the decline in the bank lending volumes is associated with the restructuring in the International Bank of Azerbaijan.
According to the CBA, as of November 1, 2015, the total volume of loans granted by banks totaled 18.566 billion manat, including 11.282 billion manat (60.76 percent) - in national currency and 7.285 billion manat (39.24 percent) - in freely convertible currency.
This ratio hit 73 and 27 percent in January 2015, but 60 and 40 percent accordingly in January-February, 59.17 и 40.83 percent accordingly in the first quarter, 55.9 and 44.1 percent in the second quarter.
For comparison, the banks delivered loans worth 17.841 billion manat (around 13.161 billion manat in national currency and 4.681 billion manat in freely convertible currency) as of October 2014.
The volume of short-term loans amounted to 4.347 billion manat (including overdue loans worth 476.8 million manat) as of October 2015 compared to 3.712 billion manat (including overdue loans worth 379.3 million manat) a year earlier. The volume of short-term loans in the economy increased by 17.13 percent in a year.
The volume of long term loans amounted to 14.219 billion manat (including 825.1 million manat worth overdue loans) as of January-October 2015, compared to 14.130 billion manat (including 564.1 million manat worth overdue loans) as of October 2014. The volume of long term loans has increased by 0.63 percent in a year.
The credit portfolio of the state banks in the country hit 5.837 billion manat with the specific weight of 31.4 percent, while private banks issued loans worth around 12.164 billion manat with a specific weight of 65.5 percent.
The remaining 3.1 percent fell to the share of non-bank credit organizations which issued 566 million manat, according to the CBA.
There are 43 banks in Azerbaijan, two of which are state, and 157 non-bank credit organizations, including 109 credit unions.
The official exchange rate is 1.0495 AZN/USD Dec. 6.
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