BAKU, Azerbaijan, December 3. The dollarization level of loans continued downward swing in Azerbaijan during the first nine months of this year, Trend reports via the Central Bank of Azerbaijan (CBA).
During the reporting period, loans in manat increased by 21.2 percent, while loans in foreign currency grew by 6.3 percent. The share of loans in foreign currency in the total loan portfolio decreased by two percentage points, reaching 16.6 percent by the end of September.
The dynamic landscape of newly issued loans showcased a weighted average interest rate of 16 percent in manat, while the foreign currency loans exhibited a competitive weighted average interest rate of six percent during the reporting period.
"Over the nine months of 2024, credit investment activity in the economy continued. During the reporting period, the loan portfolio (banking and non-banking credit organizations) rose by 18.5 percent, reaching 28.4 billion manat ($16.7 billion).
The share of long-term loans in the total loan portfolio increased from 82.9 percent to 83.9 percent by the end of September compared to the end of last year.
The volume of long-term loans at the end of the period amounted to 23.8 billion manat ($14 billion). The share of short-term loans during this period decreased from 17.1 percent to 16.1 percent. The volume of short-term loans at the end of the period amounted to 4.6 billion manat ($2.7 billion).
Excluding overdue loans, credit investments in the economy grew by 14.1 percent in trade and services, by 80.1 percent in industry and manufacturing, and by 6.3 percent in construction.
Business loans, which made up the largest share in the structure of the banking loan portfolio during the reporting period, increased by 14 percent compared to the end of last year, reaching 14.4 billion manat ($8.47 billion)," the CBA added.
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