Problems on Azerbaijan’s Automobile Market Not Due to Consumer Crediting Cut Down, Says Expert

Business Materials 21 October 2008 14:16 (UTC +04:00)

Azerbaijan, Baku, 21 October / Trend corr. U.Ismayilova /The suspension of consumer crediting by some banks did not impact on the automobile market in Azerbaijan, Ramil Osmanov, an expert of the 'Participants of real property market' public organization, said.

"The problems on automobile market of the country are due to domestic factors," Osmanov said.

If the problems on the market were due to suspension of crediting, the prices would be increased. However, the prices on the market dropped by 10% related with worsening of conditions on the market and ousting small entrepreneurs and lack of competitiveness.

Touching upon banks cancelled deals with several auto saloons on credit issue to purchase automobiles, Osmanov said that this was unofficial information and no serious changes is expected on the automobile market.

In summer, the Baku City Administration ordered to cancel all illegal automobile sale shops and to collect all sold automobiles on the market in Yasamal District (Batamdar settlement).

The activity on the market went down because of inaccessible location of the market.

The automobile crediting was widely developed in Azerbaijan, which made up about 60% of the total purchase and sale operations, before banks suspended consumer crediting issue under the influence of the global finance crisis.

On 20 October, Bank Respublika and Rabita Bank said they were expected to resume their consumer crediting in November. Mugan Bank and Azerdemiryol Bank said that the credit issue still had been frozen. Atra Bank said that the bank had never stopped issue of credits. However, the consumer credits are issued with limited sum. NBC Bank said that the bank still continue issue of credits only to the Nurgun Motors company for purchase of automobiles and bank had stopped the issue of other credits. Bank of Baku said that the bank issues only consumer credits. Kapital Bank has resumed consumer credits issue since early October. Bank Standard said that the selection policy was used while issuing credits and the preference is given to clients who have the credit cart of the Bank Standard and high salaries. AzeriGazBank said that 'the bank has practically never stopped credit issue' and went on operating in its previous regime.

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