Azerbaijan, Baku, 27 September / Trend corr. U.Ismayilova / Auto dealers and realtors, main participants of consumer crediting market in Azerbaijan, have begun to feel negative consequences of cancellation of consumer crediting by some business banks.
"Firstly, deficit of loan resources damaged real estate and automobile markets," Nusrat Ibrahimov, the general director of the MBA-Group consulting company, said on 26 September. Activity of real estate market was reduced by 20% in September as compared to the same period of 2007 and automobile market - by 15%.
In Azerbaijan rates of mortgage loaning was reduced and some banks even cancelled operations in this direction by the end of October, which took place without instruction of the National Bank of Azerbaijan. Reduction of bank's loaning rate firstly is connected with the crisis at the world financial markets. Such situation makes banks be more circumspect and apply strict selection in formation of client base, which is a part of corporate management system.
"If the similar situation will last three months more in banking system of the country, it will lead to full stagnation," Ibrahimov said.
Influence on real estate market is obvious, the expert said. Thus, under the rules of the market, active sale period begins in mid-October every year, whilst it did not happen in 2008 despite the great demand.
Baku residents use furniture crediting, as well. Demand considerably reduced at one of furniture shops, although it sold more than 10 furniture sets through loaning every month, one of prestige furniture salons told Trend .
Drop in demand has not yet influenced on prices and we do not intend to review them," the shop said.
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