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Volume of overdue loans decreases in Azerbaijan

Business Materials 10 May 2016 20:38 (UTC +04:00)

Baku, Azerbaijan, May 10

By Anvar Mammadov - Trend:

The volume of overdue bank loans reached 1.326 billion manat in Azerbaijan in March 2016, decreasing by 0.23 percent for the month, said the report of the Azerbaijani Central Bank (CBA).

As of May 10, the official exchange rate is 1.5094 AZN/USD.

Their share in the loan portfolio of banks was 6.75 percent as of March compared to 6.5 percent as of late February.

The statistics of overdue loans does not include similar loans of Aqrarkredit non-banking credit institution.

According to the report, the credit portfolio of Azerbaijani banks slightly decreased by 3.15 percent up to 19.69 billion manat for the month.

Azerbaijani banks decreased lending to the economy by 4.6 percent compared to March 2015.

The banks issued over a half of loans worth 10.03 billion manat (50.9 percent) in the national currency, while the rest part - 9.66 billion manat (49.1 percent) in foreign currency.

This ratio hit 27 and 73 percent in early 2015. But the share of foreign currency loans began increasing, reaching 49.3 percent as of the year after the devaluation of the manat in February.

As of April 1, 2016, the volume of short-term loans amounted to 4.48 billion manat (including overdue loans worth 456.8 million manat) decreasing by 2.4 percent for the year.

The volume of long term loans decreased by 5.3 percent up to 16.05 billion manat for the year (including 869.8 million manat of overdue loans).

According to the CBA, the credit portfolio of the state banks in the country hit 6.8 billion manat with the specific weight of 34.5 percent, while private banks issued loans worth around 12.29 billion manat with a specific weight of 62.5 percent.

The remaining 3 percent fell to the share of non-bank credit organizations which issued 595.5 million manat, according to the CBA.

Some 43 banks operated in Azerbaijan as of late 2015, including two state-owned banks and 157 non-bank commercial organizations, including 109 credit unions.

Six banks' licenses were revoked in January. The license of one of them - NBC Bank was restored February 2.

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