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Azerbaijani banks’ loan portfolio decreases

Business Materials 10 May 2017 13:36 (UTC +04:00)
As of early April 2017, the Azerbaijani credit organizations’ loans totaled 15.533 billion manats, which is by 21.1 percent less compared to the same period last year

Baku, Azerbaijan, May 10

By Anvar Mammadov – Trend:

As of early April 2017, the Azerbaijani credit organizations’ loans totaled 15.533 billion manats, which is by 21.1 percent less compared to the same period last year, the report of the Azerbaijani Central Bank (CBA) said.

The volume of loans, issued by the Azerbaijani credit organizations, decreased by 2.2 percent compared to early March 2017, said the report.

Loans in Azerbaijan’s national currency prevail in the structure of issued loans.

Some 52.3 percent (8.128 billion manats) of all loans account for those loans. During the year, their volume decreased by 19 percent. The remaining funds are foreign currency loans (47.7 percent, or 7.404 billion manats), their volume decreased by 23.3 percent compared to March 2016.

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

However, Azerbaijan’s Financial Market Supervisory Authority established a moratorium on the issuance of consumer loans in foreign currency to the individuals who do not have foreign exchange earnings and bank deposits since April 2016 and imposed a ban on mortgage loans in foreign currency since May 2016.

In March 2017, the volume of overdue loans in Azerbaijani national currency reached 719.9 million manats, which is by 4.1 percent more compared to March 2016.

The share of overdue loans in Azerbaijani manats reached 4.6 percent of the loan portfolio of the country’s banks and non-banking credit organizations as of March 2017, the report said.

In March 2017, overdue loans in foreign currency amounted to 870.5 million manats, which is by 37.1 percent more compared to March 2016, and the share of these loans reached 5.6 percent.

In general, the total volume of overdue loans in Azerbaijan amounted to 1.590 billion manats (19.9 percent increase for the year). Their share in the loan portfolio of the country’s banks and non-banking credit organizations as of March 2017 reached 10.2 percent.

As of late March 2017, the volume of short-term loans amounted to 3.347 billion manats (including overdue loans worth 364.4 million manats), the volume of long term loans amounted to 12.185 billion manats (including overdue loans worth 1.225 billion manats).

According to the CBA, the loan portfolio of the state banks in Azerbaijan amounted to 5.286 billion manats, and their share in the loan portfolio of the country’s banks and non-banking credit organizations was 34 percent.

Private banks issued loans worth 9.792 billion manats, and their share amounted to 63 percent.

Some 4.057 billion manats of these loans account for the share of banks with foreign capital.

The remaining three percent account for the share of non-bank credit organizations, which issued 454.4 million manats.

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