MONETARY-CREDIT SECTOR

Major tendencies in different segments of monetary-credit system in July:

• The rate of manat in regard to world leading currency - US dollar got consolidated in the currency market.

• In July money mass grew considerably in the monetary market;

• In July the Azerbaijani banks increased crediting in economy by 4.17%

• Deposit base of the Azerbaijani banks grew 4.65%,

• Trading sessions on placement of T-bills were held in the stock market. The NBA continued the placement of short-term notes in the Baku Stock Exchange.

Currency market and rate of AZM

In July the exchange of AZM rate grew 21 manats and dropped from 4707 manats to 4686 in regard to USD.

Maximal rates were fixed on 1 and 30 July. The fluctuations between maximal and minimal figures made up 21 points.

In July the exchange rate of euro dropped by 6,86 manats (5688.64 manats per euro to 5681,78 manats per euro). The monthly minimum rates were fixed at 5601.99 EUR/AzM on 4 July and the monthly maximum rates was achieved on 11 July - 5740.3 euro/AzM (the difference was 138,31 points).

Amount of currency trading sessions at BBVB in July 2005

Amount, in mln USD

Rise,

In July 2005

Total, (BEST)

$42,058

-28,009%


As of totals of trading sessions in the currency section the Baku Interbank Currency exchange defined 5 leader banks in July 2005. The leader-banks of the currency exchange market were the International Bank of Azerbaijan, Azerigasbank stock-investment bank, Rabitabank stock-investment bank, Amrahbank and Bank of Baku stock-commercial bank.

Banks

Share in total, %

International Bank of Azerbaijan

64,83%

Azerigasbank

8.81

Rabitabank

5.77

Amrahbank

4.94

Bank of Baku

2.93



*the data do not take into consideration the deals of the National Bank of Azerbaijan

In July 20 member-banks of the currency section participated in the auctions. They concluded 101 deals at 21 trading sessions with the total amount of 197,597bn manats, or $42,058m. 10.2% of the turnovers of currency section fell on SWAP-operations system which stated 16 January 2005.

As compared to June the amount of trading sessions at the currency section in July fell 20.14%. The rates of the national currency rose 0.49% or 23.13 manats - from 4703.25 manats to 4680.12 manats per 1 US dollar. In the end the average sustained rate of AZM in regard to US dollar was 4698.21 manats per 1 US dollar, whereas in June it was equal to 4726.82.

Money market

In July monthly pace of money mass rose 4.7%, while in 2005 a cut made up 18%. As of 1 August 2005 money mass (M2) made up 4033.4bn manats, against 3851.3bn manats of 1 July and 3418bn manats as of 1 January 2005.

In July the amount of cash money (Рњ0) grew 5.3%, while in 2005 a drop made up 17.86%. As of 1 August M0 turned out at 2815.7bn manats against 2673.6bn manats fixed as of 1 July and 2389bn manats fixed as of 1 January 2005.

In July the amount of non-cash money grew 3.4%, drop in 2005 was equal to 18.34%. As of 1 August non-cash funds grew to 1217.7bn manats against 1177.7bn manats fixed as of 1 July and 1029bn manats fixed as of 1 January 2005.

Parameters of monetary market, in bn AZM

Amount, 01.08.05

Rise in July 2005, %

Money mass in extensive understating (Рњ3)

8851,7

4,867

Money mass on AZM (Рњ2)

4033,4

4,7

Cash in AZM

2815,7

5,3%

Non-cash money in AZM

1217,7

3,4%,

Net international reserves and international assets, in bn manats

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Banks

Share in total, %

International Bank of Azerbaijan

64,83%

Azerigasbank

8.81

Rabitabank

5.77

Amrahbank

4.94

Bank of Baku

2.93



*the data do not take into consideration the deals of the National Bank of Azerbaijan

In July 20 member-banks of the currency section participated in the auctions. They concluded 101 deals at 21 trading sessions with the total amount of 197,597bn manats, or $42,058m. 10.2% of the turnovers of currency section fell on SWAP-operations system which stated 16 January 2005.

As compared to June the amount of trading sessions at the currency section in July fell 20.14%. The rates of the national currency rose 0.49% or 23.13 manats - from 4703.25 manats to 4680.12 manats per 1 US dollar. In the end the average sustained rate of AZM in regard to US dollar was 4698.21 manats per 1 US dollar, whereas in June it was equal to 4726.82.

Money market

In July monthly pace of money mass rose 4.7%, while in 2005 a cut made up 18%. As of 1 August 2005 money mass (M2) made up 4033.4bn manats, against 3851.3bn manats of 1 July and 3418bn manats as of 1 January 2005.

In July the amount of cash money (Рњ0) grew 5.3%, while in 2005 a drop made up 17.86%. As of 1 August M0 turned out at 2815.7bn manats against 2673.6bn manats fixed as of 1 July and 2389bn manats fixed as of 1 January 2005.

In July the amount of non-cash money grew 3.4%, drop in 2005 was equal to 18.34%. As of 1 August non-cash funds grew to 1217.7bn manats against 1177.7bn manats fixed as of 1 July and 1029bn manats fixed as of 1 January 2005.

Parameters of monetary market, in bn AZM

Amount, 01.08.05

Rise in July 2005, %

Money mass in extensive understating (Рњ3)

8851,7

4,867

Money mass on AZM (Рњ2)

4033,4

4,7

Cash in AZM

2815,7

5,3%

Non-cash money in AZM

1217,7

3,4%,

Net international reserves and international assets, in bn manats

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Amount, in mln USD

Rise,

In July 2005

Total, (BEST)

$42,058

-28,009%


As of totals of trading sessions in the currency section the Baku Interbank Currency exchange defined 5 leader banks in July 2005. The leader-banks of the currency exchange market were the International Bank of Azerbaijan, Azerigasbank stock-investment bank, Rabitabank stock-investment bank, Amrahbank and Bank of Baku stock-commercial bank.

Banks

Share in total, %

International Bank of Azerbaijan

64,83%

Azerigasbank

8.81

Rabitabank

5.77

Amrahbank

4.94

Bank of Baku

2.93



*the data do not take into consideration the deals of the National Bank of Azerbaijan

In July 20 member-banks of the currency section participated in the auctions. They concluded 101 deals at 21 trading sessions with the total amount of 197,597bn manats, or $42,058m. 10.2% of the turnovers of currency section fell on SWAP-operations system which stated 16 January 2005.

As compared to June the amount of trading sessions at the currency section in July fell 20.14%. The rates of the national currency rose 0.49% or 23.13 manats - from 4703.25 manats to 4680.12 manats per 1 US dollar. In the end the average sustained rate of AZM in regard to US dollar was 4698.21 manats per 1 US dollar, whereas in June it was equal to 4726.82.

Money market

In July monthly pace of money mass rose 4.7%, while in 2005 a cut made up 18%. As of 1 August 2005 money mass (M2) made up 4033.4bn manats, against 3851.3bn manats of 1 July and 3418bn manats as of 1 January 2005.

In July the amount of cash money (Рњ0) grew 5.3%, while in 2005 a drop made up 17.86%. As of 1 August M0 turned out at 2815.7bn manats against 2673.6bn manats fixed as of 1 July and 2389bn manats fixed as of 1 January 2005.

In July the amount of non-cash money grew 3.4%, drop in 2005 was equal to 18.34%. As of 1 August non-cash funds grew to 1217.7bn manats against 1177.7bn manats fixed as of 1 July and 1029bn manats fixed as of 1 January 2005.

Parameters of monetary market, in bn AZM

Amount, 01.08.05

Rise in July 2005, %

Money mass in extensive understating (Рњ3)

8851,7

4,867

Money mass on AZM (Рњ2)

4033,4

4,7

Cash in AZM

2815,7

5,3%

Non-cash money in AZM

1217,7

3,4%,

Net international reserves and international assets, in bn manats

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Banks

Share in total, %

International Bank of Azerbaijan

64,83%

Azerigasbank

8.81

Rabitabank

5.77

Amrahbank

4.94

Bank of Baku

2.93



*the data do not take into consideration the deals of the National Bank of Azerbaijan

In July 20 member-banks of the currency section participated in the auctions. They concluded 101 deals at 21 trading sessions with the total amount of 197,597bn manats, or $42,058m. 10.2% of the turnovers of currency section fell on SWAP-operations system which stated 16 January 2005.

As compared to June the amount of trading sessions at the currency section in July fell 20.14%. The rates of the national currency rose 0.49% or 23.13 manats - from 4703.25 manats to 4680.12 manats per 1 US dollar. In the end the average sustained rate of AZM in regard to US dollar was 4698.21 manats per 1 US dollar, whereas in June it was equal to 4726.82.

Money market

In July monthly pace of money mass rose 4.7%, while in 2005 a cut made up 18%. As of 1 August 2005 money mass (M2) made up 4033.4bn manats, against 3851.3bn manats of 1 July and 3418bn manats as of 1 January 2005.

In July the amount of cash money (Рњ0) grew 5.3%, while in 2005 a drop made up 17.86%. As of 1 August M0 turned out at 2815.7bn manats against 2673.6bn manats fixed as of 1 July and 2389bn manats fixed as of 1 January 2005.

In July the amount of non-cash money grew 3.4%, drop in 2005 was equal to 18.34%. As of 1 August non-cash funds grew to 1217.7bn manats against 1177.7bn manats fixed as of 1 July and 1029bn manats fixed as of 1 January 2005.

Parameters of monetary market, in bn AZM

Amount, 01.08.05

Rise in July 2005, %

Money mass in extensive understating (Рњ3)

8851,7

4,867

Money mass on AZM (Рњ2)

4033,4

4,7

Cash in AZM

2815,7

5,3%

Non-cash money in AZM

1217,7

3,4%,

Net international reserves and international assets, in bn manats

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Banks

Share in total, %

International Bank of Azerbaijan

64,83%

Azerigasbank

8.81

Rabitabank

5.77

Amrahbank

4.94

Bank of Baku

2.93



*the data do not take into consideration the deals of the National Bank of Azerbaijan

In July 20 member-banks of the currency section participated in the auctions. They concluded 101 deals at 21 trading sessions with the total amount of 197,597bn manats, or $42,058m. 10.2% of the turnovers of currency section fell on SWAP-operations system which stated 16 January 2005.

As compared to June the amount of trading sessions at the currency section in July fell 20.14%. The rates of the national currency rose 0.49% or 23.13 manats - from 4703.25 manats to 4680.12 manats per 1 US dollar. In the end the average sustained rate of AZM in regard to US dollar was 4698.21 manats per 1 US dollar, whereas in June it was equal to 4726.82.

Money market

In July monthly pace of money mass rose 4.7%, while in 2005 a cut made up 18%. As of 1 August 2005 money mass (M2) made up 4033.4bn manats, against 3851.3bn manats of 1 July and 3418bn manats as of 1 January 2005.

In July the amount of cash money (Рњ0) grew 5.3%, while in 2005 a drop made up 17.86%. As of 1 August M0 turned out at 2815.7bn manats against 2673.6bn manats fixed as of 1 July and 2389bn manats fixed as of 1 January 2005.

In July the amount of non-cash money grew 3.4%, drop in 2005 was equal to 18.34%. As of 1 August non-cash funds grew to 1217.7bn manats against 1177.7bn manats fixed as of 1 July and 1029bn manats fixed as of 1 January 2005.

Parameters of monetary market, in bn AZM

Amount, 01.08.05

Rise in July 2005, %

Money mass in extensive understating (Рњ3)

8851,7

4,867

Money mass on AZM (Рњ2)

4033,4

4,7

Cash in AZM

2815,7

5,3%

Non-cash money in AZM

1217,7

3,4%,

Net international reserves and international assets, in bn manats

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Volume, 01.07.05

2005 %

Net international reserves

5404,5

12,59

Net international assets

3447,2

26,964

Credit market

In July the Azerbaijani banks increased crediting economy by 4,17%, while it grew 12.8% in 2005.

As of 1 August the banks allotted 5582.9bn manats worth of credits against 5398.2bn manats as of 1 July and 4947,302bn manats as of 1 January 2005.

As of 1 August 278.9bn manats of total credits were overdue against 290.9bn manats as of 1 July and 275,271bn as of January 2005. The statistics of overdue credits does not include the similar loans allotted by non-bank credit organization Agrarkredit.

The short-term credits comprised 3388.2bn manats (including 207.1bn manats of overdue loans) against 3373.8bn manats (including 218.7bn manats of overdue loan) as of 1 July and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2094.7bn manats (71.8bn manats) against 2024.4bn manats (72.2bn manats) as of 1 July and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 August two public banks allocated credits for 2534,484bn manats (+3,23% in July and +11,89% in 2005), private banks - 2843,679bn manats (+3,84% in July and +25,93% for 2005).

As of 1 August credit portfolio of banks with foreign capital made up 1146.5bn manats (-2.2% and +50.28% respectively), including 99bn manats loaned by foreign banks (+5.52% and -5.1% respectively).

As of 1 August average annual rate of banking crediting the economy comprised 15.97% in national currency against 16.33% as of 1 July and 6.93% as of 1 January 2005. With consideration of inflation in January to June, real rate was equal to 13.77%. The average annual rate on banking crediting the economy made up 18.24% in foreign currency against 18.28% as of 1 June and 18.96% as of 1 January 2005.

As of 1 August the average annual rate of banking crediting of legal entities made up 14.88% in national currency against 15.4% as of 1 June and 16.06% as of 1 January 2005, while real rates вЂ" 12.68%. The average annual rate of banking credit of legal entities constituted 16.56% in foreign currency against 16.47% as of 1 May and 17.12% as of 1 January 2005.

As of 1 August average annual rate on banking crediting of physical entities comprised 18.5% in national currency against 18.65% as of 1 July and 14.22% as of 1 January 2005, while real вЂ" 16.3%. Average annual rate of banking crediting of physical entities made up 21,56% in foreign currency against 21.75% as 1 May and 22.89% as of 1 January 2005..

No deal was concluded at the Organized Interbank Currency Market (OICM), functioning under the trading system BEST.

Banking sector

In July deposit base of Azerbaijani banks dropped 4.65% due to fall in deposits of legal entities, while since the beginning of the year it dropped 17.75%. As of 1 August the total amount of bank deposits and savings of legal and physical entities made up 6036bn manats against 5767.4bn manats as of 1 July against 5126.3bn manats as of 1 January 2005. 1217.7bn manats of the total sum fell on manat reserves, while 4818.3bn manats on hard currency. In May growth of deposits in manat made up 3.4% while currency deposits fell 4.98%.

As of 1 August the amount of savings and deposits of physical entities grew to 2.94%, while the savings and deposits of legal entities dropped 5.68%. The savings and deposits of legal entities of individual clients increased 9.9%, while deposits of corporate clients grew 22.8%

As of 1 August the amount of savings and deposits of physical entities grew to 2215.7bn manats against 2152.5bn manats as of 1 July and 2015.6bn manats as of 1 January 2005. As of 1 August the amount of deposits of legal entities made up 3820.3bn manats against 3614.9bn manats a of July and 3110.7bn manats as of 1 January 2005.

As of 1 August 244.4bn manats (+11.19%) of savings and deposits of physical entities was implemented in national currency, while 1971.3bn manats (+1,99%) in hard currency. 973.3bn manats of deposits of legal entities (+1.6%) were implemented in manats, while 2847bn manats (+7.15%) вЂ" in hard currency.

As of 1 August the average rate of bank deposits in the national currency comprised 8.03% against 7.52% as of 1 July and 6.93% as of 1 January 2005. The real deposit rate for the first time made up 5.83% in January to July. The average rate of banking deposit in hard currency constituted 10.91% against 9.99% as of 1 July and 9.43% as of 1 January 2005.

As of 1 August the average rate of bank deposits of legal entities in the national currency comprised 6.54% against 6.3% as of 1 July and 5.89% as of 1 January 2005, while real rate was 4.34%. The average rate of banking deposit of corporate client in hard currency is 6.66% against 6.6% as of 1 April and 5.58% as of 1 January 2005.

As of 1 August the average rate of bank deposits of physical entities in the national currency comprised 10.11% against 9.66% as of 1 May and 9.61% as of 1 January 2005, while real rate вЂ" 7.91%. The average rate of banking deposit of individual client in hard currency is 11.01% against 10.52% as of 1 July and 10.53% as of 1 January 2005.

Status of attracted resources as of 31 July, 2004

Amount in bn AZM

Share in foreign currency in bn AZM (%)

Rise in July 2005, in %

Total deposits

6036

4818,3

4,65

Deposits of the population

2215,7

1971,3

2,94

Deposits of legal entities

3820,3

2847

5,68



In July the average placement rate for 90-day credits (BakIBOR), calculated in the base applications by 16 leading commercial banks of Azerbaijan, grew 0.59% as compared to 1 July 2005 on manat credits and 0,58% on dollar credits. As a result of 7 months of 2005 BakIBOR grew 2.22%, while currency - 1.69%. As of 1 August 2005 BakIBOR made up 15,36% per annum in manat credits and 17.58% per annum.

As of totals of July 2005 average statutory capital of the Azerbaijani bank dropped from 26.2bn manats to 27.7bn manats against 23.9bn manats as of beginning of the year and normative requirement for $3.5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In July the net of branches of the banks grew 0.83%.

As of 1 July 43 banks had had 363 branches against 360 branches of 43 banks as of 1 July against 350 branches (44 banks) as of 1 January 2005.

In July the statutory capital of banks dropped from 1127.8bn manats to 1135.1bn manats, or 0.65%, while this year the statutory capital comprised only 7.39%. The capital of 41 commercial banks grew in June from 987.8bn manats to 995.1bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 August 2005 24,27bn manats of statutory capital falls per bank in average.

The total capital of 17 banks with foreign participation grew in July from 442.4bn manats to 447.8bn manats and their share in entire statutory capital comprised 39.5%, while net foreign investments (214bn manats) comprised only 18.9% of the total sum.

Stock market

In July the Ministry of Finances held two auctions on placement of T-bills. The auction with issue of 30bn manats resulted in the placement of 26.2bn manats (87.3% of the issue). Average sustained profitability rate of the auction comprised 10.30%, or lower than the annual inflation ratio which comprised 11.6.

No deal on T-bills was held in the secondary market.

In June the National Bank of Azerbaijan (NBA) held six auctions on placement of short-term notes. The emitter succeeded to place only 66.8bn manats (70.3% of the issue) of the total of 95bn manats.

The low interests on the notes are explained with their low profitability rate, which does not cover the annual inflation ratio. The average sustained profitability rate on the results of three June auctions comprised 9.96% per annum. 3 deals with short-term notes were held in the secondary market with the total amount of 7bn manats.

No trading session was held at the corporate bonds market.

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