MONETARY-CREDIT SECTOR

Major tendencies in different segments of monetary-credit system in 2005:

In December money mass Рњ2 reduced;

In December the banks of Azerbaijan increased crediting in economy;

In December deposit base of the Azerbaijani banks grew;

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 December 2005 the International Bank of Azerbaijan lost its top position at the Baku Interbank Currency Exchange. The IBA was a leader at the exchange currency market of Azerbaijan in 2003 (December, November, September, July, August) and 2004 (except October), in January to November 2005.

Table 1

Amount of currency trading sessions at BBVB in December 2005

Amount, in mln. USD

Rise in December 2005

Total, (BEST)

$105,919

+2,13 раза

Without consideration of the deals at the NBA, 36.38% of the currency turnover fell on TexnikaBank in December.

Along with TexnikaBank, the top five included Bank of Baku (12.03%), Kapital Bank (5.19%), Amrahbank (4.76%) and IBA (3.77%), according to BBVB.

As of totals of November the leaders were IBA (24.24%), Kapital Bank (24.11%), TexnikaBank (17.88%), Bank Standard (17.08%) and Bank of Baku (12.54%).

Banks

Share in total, %

International Bank of Azerbaijan

3,77

Amrahbank

4,76

KapitalBank

5,19

Technikanbank

36,38

Bank of Baku

12,54

In December 26 member-banks of the currency section participated in the auctions. They concluded 44 deals at 156 trading sessions with the total amount of 486,323bn manats, or $105,919m, which is 1.13 times up as compared to November 2005.

The exchange rate of the national currency rose 1 manats - from 4592 manats to 4593 manats per 1 USD. In the end, the average sustained rate of AZM in regard to USD made up 4591.46 manats per 1 USD in December, whereas in October was 4595.45 AZN.

Monetary market

In December monthly pace of money mass reduced 2.7%, while in 2005 a cut made up 9.4%.

As of 1 January 2005 money mass (M2) made up 3739.2bn manats, against 3841.6bn manats of 1 December and 3418bn manats as of 1 January 2005.

In December the amount of cash money (Рњ0) dropped 3.3%, while in 2005 a drop made up 14.6%. As of 1 January M0 turned out at 2737m manats against 2648.7bn manats fixed as of 1 December and 2389bn manats fixed as of 1 January 2005.

In December the amount of non-cash money grew 15.9%, rise in 2005 was equal to 15.9%. As of 1 January 2006 non-cash funds grew to 1192.8bn manats against 1192.8m manats fixed as of 1 December and 1029bn manats fixed as of 1 January 2005.

Parameters of the monetary market

Amount, 01.01.06

Money mass in extensive understating (Рњ3)

9177,1

Money mass on AZM (Рњ2)

3739,2

Cash in AZM

2737

Non-cash in manat

1192,8


In December the amount of the net international reserves (NIR) of the National Bank of Azerbaijan comprised dropped 3.94%, while since the beginning of the year it has grown 9.6%.

As of 1 January 2005 NIR comprised 5,261m manats against 5477m manats as of 1 December and 4800.2bn manats as of 1 January 2005. Net internal asserts constituted 4015.2m manats against 3524.5bn manats as of 1 December and 2715.1bn manats as of 1 January 2005.

As of 1 December the expanded money mass (M3) has amounted to 9177.1bn manats (incuding 3418m manats in the national currency) against 9001.5bn manats (including 3841.6bn manats in the national currency) as of 1 December and 7515.2bn manats (3418bn manats in AzM) as 1 January 2005.

Credit market

In December the Azerbaijani banks increased crediting economy by 6.07%, while it grew 45.6% in 2005.

As of 1 January 2006, 7204,816bn manats of total credits were allocated (including 2714,554bn manats in national currency and 4490,262bn manats in hard currency) against 6792.583bn manats (including 2653,804b manats I national currency and 4138,778bn manats in hard currency) as of 1 December and 4947,302bn as of 1 January 2005. Overdue credits and loans comprised 340,993bn manats as of 1 December against 344.4bn manats as of 1 December and 275,271bn manats as of 1 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 4566.4bn manats (including 243bn manats of overdue loans) against 4332.8bn manats (including 246.4bn manats of overdue loan) as of 1 December and 3503.9bn manats (208.7bn manats) as of 1 January 2005. The long-term credits constituted 2638.4bn manats (98bn manats) against 2459.7bn manats (98bn manats) as of 1 December and 1443.4bn manats (66.6bn manats) as of 1 January 2005.

As of 1 January two public banks allocated credits for 3741.367bn manats (+9.3% in November and +65.16% in 2005), private banks 3265,356bn manats (+2.9% in December and +44.6% for 2005).

As of 1 January 2006 credit portfolio of banks with foreign capital made up 1317.6bn manats (+3.2% and +72.7% respectively), including 129.7bn manats loaned by foreign banks (+4.85% and +24.4% respectively). As of 1 January credit portfolio 85 NBKO comprised 198,094bn manats against 198,094bn manats 83 NBKO as of 1 December and 424.14bn manats 70 NBKO as of 1 January.

As of 1 January average annual rate of banking crediting the economy comprised 15.14% in national currency against 15.62% as of 1 December and 15.55% as of 1 January 2005. With consideration of inflation rate of 5.4% in 2005, real credit rate was equal to 9.74%. The average annual rate on banking crediting the economy made up 17.11% in foreign currency against 17.44% as of 1 December and 18.96% as of 1 January 2005.

As of 1 January the average annual rate of banking crediting of legal entities made up 14.36% in national currency against 14.78% as of 1 December and 16.06% as of 1 January 2005, while real rates 8.96%. The average annual rate of banking credit of legal entities constituted 15.57% in foreign currency against 15.74% as of 1 December and 17.12% as of 1 January 2005.

As of 1 January average annual rate on banking crediting of physical entities comprised 17.36% in national currency against 17.36% as of 1 December and 14.22% as of 1 January 2005, while real 11.96%. Average annual rate of banking crediting of physical entities made up 21.31% in foreign currency against 21.19% as 1 December and 22.89% as of 1 January 2005.

Banking sector

In December the deposit base of Azerbaijani banks grew 1.38%, while since the beginning of the year its growth has made up 25.6%.

As of 1 January the total amount of bank deposits and savings of legal and physical entities made up 6440.1bn manats against 6352.7bn manats as of 1 December against 5126.3bn manats as of 1 January 2005. 1222bn manats of the total sum fell on manat reserves, while 5218.1bn manats on hard currency. In December growth of deposits in manat made up 1.13% while currency deposits fell 2.45%.

As of 1 December the amount of savings and deposits of physical entities grew to 5.89%, while the savings and deposits of legal entities dropped 1.25%. The savings and deposits of legal entities of individual clients increased 22.7%, while deposits of corporate clients grew 27.5%

As of 1 January the amount of savings and deposits of physical entities at banks grew to 2472.7bn manats against 2335.2bn manats as of 1 December and 2015.6bn manats as of 1 January 2005. As of 1 January the amount of deposits of legal entities made up 3967.4bn manats against 4017.5bn manats as of 1 December and 3110.7bn manats as of 1 January 2005.

As of 1 January 279.2bn manats (+8.6%) of savings and deposits of physical entities was implemented in national currency, while 2078bn manats (+5.6%) in hard currency. 942.8bn manats of deposits of legal entities (+7.7%) were implemented in manats, while 3024.6bn manats (-1.9%) in hard currency.

As of 1 January 2006 the average rate of bank deposits of physical entities in the national currency comprised 8.92% against 8.41% as of 1 December and 6.93% as of 1 January 2005, while real rate 2.8% amid 5.4% inflations. The average rate of banking deposit in hard currency was 10.19% against 10.18% as of 1 December and 9.43% as of 1 January 2005.

As of 1 January the average rate of bank deposits of legal entities in the national currency comprised 7.41% against 7.05% as of 1 December and 5.89% as of 1 January 2005, while real rate was 2.01%. The average rate of banking deposit of corporate client in hard currency is 6.85% against 6.77% as of 1 December and 5.58% as of 1 January 2005.

As of 1 January the average rate of bank deposits of physical entities in the national currency comprised 10.7% against 10.42% as of 1 November and 9.61% as of 1 January 2005, while real rate 5.3%. The average rate of banking deposit of individual client in hard currency is 10.71% against 10.75% as of 1 December and 10.53% as of 1 January 2005.

As of totals of 2005 average statutory capital of the Azerbaijani bank dropped from 27.9bn manats to 29.5bn manats against 23.9bn manats as of beginning of the year and normative requirement for $5m as of aggravate capital of the bank, the National Bank of Azerbaijan announced. In December the net of branches of the banks grew 0.8%.

As of 1 January 44 banks had had 374 branches against 377 branches as of 1 December and 350 branches (44 banks) as of 1 January 2005.

In December the statutory capital of banks dropped from 1201.73bn manats to 1298.13bn manats, or 8.02%, while this year the statutory capital comprised only 23.5%. The capital of 42 commercial banks grew in December from 140bn manats to 179.1bn manats. The capital of two state banks was maintained at the level of 140bn manats. As of 1 January 2006 26.6bn manats of statutory capital falls per bank in average.

The total capital of 17 banks with foreign participation grew in December from 482.13bn manats to 489.9bn manats and their share in entire statutory capital comprised 37.7%, while net foreign investments (242.8bn manats) comprised only 18.7% of the total sum.

Stock market

In December the Ministry of Finances held two auctions on placement of T-bills. The auction with issue of 75bn manats resulted in the placement of 17.45bn manats (23.3% of the issue). Average sustained profitability rate of the auction comprised 12.57%. only one deal was fixed at the secondary market in the amount of 5,895m manats.

In December the National Bank of Azerbaijan (NBA) held 4 auctions on placement of short-term notes. The emitter succeeded to place only 157.63bn manats (95.5% of the issue) of the total of 165bn manats. The average sustained profitability rate on the results of three June auctions comprised 11.55% per annum.

16 deals were concluded at the secondary market on short-term notes with the total amount of 30,583bn manats.

In December placement at the secondary market of corporate shares made up 136,923bn manats, while in the secondary market it made up 1.6bn manats. Corporate bonds were placed in the amount of $1,785m, while in the secondary it was fixed in the amount of $181,100.

Azerbaijani BestComp Group wins CISCO Corporation's tier-one partnership
Azerbaijani BestComp Group wins CISCO Corporation's tier-one partnership
Kazakh cities introducing smart technologies via Smart City projects
Kazakh cities introducing smart technologies via Smart City projects
EU working with Georgian partners to strengthen cybersecurity in country
EU working with Georgian partners to strengthen cybersecurity in country
Loading Bars
Latest
PM Pashinyan urges Armenians to flee from Nagorno-Karabakh region to Armenia
Iranian Energy Exchange announces products to be on sale September 28
Defense ministry: Azerbaijani military command proposes Armenian garrison in Agdere to surrender
EEAS High Representative: Return to negotiations of Nagorno Karabakh conflict settlement needed urgently
Azerbaijani parliament make decision to introduce martial law
Iran’s Bahar Azadi gold coin price still rising
UN High Commissioner for Refugees: Crucial that Armenia and Azerbaijan heed calls for de-escalation, calm
Azerbaijani president: Armenia will be held accountable for this crime
NATO deeply concerned by large-scale military hostilities in Nagorno-Karabakh conflict zone
ICRC calls on Armenia, Azerbaijan to take all measures necessary to ensure that civilian life and infrastructure respected, protected
Iran expands volume of gas reserves
Azerbaijani defense minister: Armenian armed forces retreating suffering big losses
Ukrainian MFA deeply concerned with escalation of conflict between Armenia, Azerbaijan
Azerbaijani community of Nagorno-Karabakh issues statement on Armenia’s recent attack (VIDEO)
MFA: Georgia express readiness to contribute to de-escalation of Armenian-Azerbaijani conflict
Azerbaijani president: I have said several times, including from UN platform recently, that Armenia preparing for new war, and Armenia must and will be stopped
Israel-Azerbaijan International Association urges Armenia to stop occupation policy
President Ilham Aliyev: Azerbaijan will never negotiate with puppet junta regime
Azerbaijani president: Ours is the cause of justice, we will win
Azerbaijani president: Armenia received their punishment this time again and will continue to receive it
France reiterates its commitment to reaching negotiated and lasting settlement of Nagorno Karabakh conflict
Turkish president phones Azerbaijani president
OSCE Chairperson-in-Office calls for return to ceasefire around Nagorno-Karabakh
German Federal Foreign Office appeals to end hostilities within Nagorno Karabakh region
President Erdogan: Turkey with all its capacities close to Azerbaijan
Assistant to president: Security Council holds meeting chaired by Azerbaijani supreme commander
Iran reveals its COVID-19 data for September 27
Azerbaijani parliament to hold meeting
Azerbaijani Defense Ministry shared video footage from battlefield
Azerbaijan confirms 132 more COVID-19 recoveries
Azerbaijani Defense Ministry: Armenian armed forces’ defense line broken through, 7 villages liberated from occupation
Kazakhstan's MFA calls on Azerbaijan, Armenia to abandon use of force, start negotiations
Council of Europe Secretary General calls on Armenia, Azerbaijan to immediately stop hostilities
Hajiyev: Azerbaijani people united around supreme commander
Hikmat Hajiyev: Armenians distributing old videos
President of European Council appeals for military action to stop within Nagorno Karabakh conflict
Azerbaijani Prosecutor General's Office: 9 wounded civilians hospitalized
Azerbaijani BestComp Group wins CISCO Corporation's tier-one partnership
Weekly review of Azerbaijan's transport sector
Georgia president: Very concerned with resumption of hostilities between Armenia, Azerbaijan
Turkish Parliament Speaker: Armenia - terrorist state that threatens not only Azerbaijan
Turkish ambassador: Turkey has always been and will be next to Azerbaijan
Defense ministry discloses villages liberated by Azerbaijani army
Zakharova: Russian FM intensively conducting talks on situation in Nagorno-Karabakh region
OSCE MG co-chairs appeal to cease hostilities within Nagorno-Karabakh conflict
Azerbaijan's MFA: Full responsibility for current situation falls on Armenia
Assistant to president: Azerbaijani armed forces liberate number of occupied territories
Azerbaijani president chairs meeting of Security Council (PHOTO)
Defense Consultant: Any activities conducted in Nagorno Karabakh by Armenia - illegal
CSTO makes statement regarding aggravation of Nagorno-Karabakh conflict
President Ilham Aliyev: Armenia plans to occupy Azerbaijani lands and does not hide it
Armenia confirms casualties suffered from its military attack on Azerbaijan
Iranian Offshore Oil Company boosts extraction
President Ilham Aliyev: Azerbaijani army currently inflicting blows to Armenia's military positions
Azerbaijani NGOs appeal to presidents of US, Russia, France due to Armenian provocation
Ombudsman makes statement on Armenia's gross violation of ceasefire with Azerbaijan
Net profit of Azerbaijani banks slightly drops
Port facilities launched in Iran's Hormozgan Province
Azerbaijan's import of cars from Turkey down
Import of cars from Turkey to Russia down during COVID-19
Cargo shipment data from Italy via Turkey's port disclosed
Azerbaijan discloses names of civilians wounded as result of Armenia's attack
Azerbaijani Defense Ministry: Armenian side suffering numerous losses
Lithuanian, Latvian FMs concerned over Armenia's large-scale provocation against Azerbaijan
Foreign Ministry: Turkey to render required support to Azerbaijan
President Aliyev: Armenia plans to occupy Azerbaijani lands and does not conceal that
Azerbaijani president: We have no military targets in Armenia
Russian Foreign Ministry makes statement about hostilities in Nagorno-Karabakh region
President Aliyev: Azerbaijani Army currently firing on and dealing blows to Armenia's military positions
Defense Ministry: Azerbaijan Army’s counter-offensive operation continues successfully
Value of goods sold at Iran Mercantile Exchange increases
Demand for Turkish cars in Kazakhstan drops
President Ilham Aliyev appeals to Azerbaijani people (PHOTO)
Turkish presidential spokesman: Ankara supports Baku, condemns Armenia’s latest provocative actions against Azerbaijan
Turkish presidential administration: Armenia responsible for destabilizing situation in region
Turkish Grand National Assembly member: Armenian PM’s behavior shows that his policy far from peace and stability
Azerbaijani Defense Ministry appeals to population of occupied Nagorno-Karabakh region
Defense ministry: Azerbaijan denies Armenia’s information about shooting down of 3 tanks
S. Korea reports 95 more COVID-19 cases, 23,611 in total
Arab analyst: OIC should have clear position in resolution of Nagorno-Karabakh conflict
Peru's COVID-19 cases exceed 800,000
Number of trucks passes via Iran's Bazargan checkpoint revealed
Tengiz Tsertsvadze: Incease in coronavirus cases is expected for next several days, the situation will stabilize afterwards
12 OSA anti-aircraft missile systems of Armenian air defense units were destroyed - Defense Ministry
Defense Ministry: Azerbaijan Army’s Troops launches counter-offensive operation along entire front
Hikmat Hajiyev: Entire responsibility for situation at frontline, its further dev't lies on leadership of Armenia
Defense Ministry: Firing points and combat activities of armed forces of Armenia suppressed
Iran's cotton production to increase
Iranian diplomat, UN envoy stress political talks to solve Syrian crisis
COVID-19: 64 fresh cases recorded in Kazakhstan
Armenian armed forces shell Azerbaijani human settlements located in the frontline zone
22 illegal immigrants rescued, 3 bodies recovered off Libyan coast
China's foreign minister may visit Japan as early as October
13 militants killed in clashes with army in northern Lebanon
Trump nominates conservative judge Amy Coney Barrett for U.S. Supreme Court
Explosion kills 7 in Syria's Hasakah
Moscow's death toll from confirmed coronavirus cases rises by 18
Saudi Arabia plans to resume tourist visas by early 2021: minister
Plant of Iran's South Kaveh Steel Company launched
Azerbaijan's cotton company to purchase tires via tender
All news