MONETARY-CREDIT SECTOR

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

Net international reserves and international assets, in bn manats

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

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

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

Net international reserves and international assets, in bn manats

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

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

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

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

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