Azerbaijan Bank’s Business Not Affects Daughter Company’s Activity

Business Materials 8 November 2008 14:15 (UTC +04:00)

Azerbaijan, Baku, 8 November / Trend , corr. U.Ismayilova / Suspension the issue of consumer lending by Xalq Bank, which is the founder of the Azerbaijani Xalq Bank insurance company, did not affect company's activity," Akpar Tairli, the Assistant General Director of the company, said.

"The incomes of the company declined, but not too much. This fact is not due to the current situation in the bank," Tairli said.

According to Tairli, Xalq Bank has suspended the issue of consumer loans not because of the global financial crisis, but the bank diversifies its portfolio and intends to redirect its funds to other projects.

Tairli did not detail bank's further plans.

Before, Xalq Bank said that bank would resume the issue of consumer loans in the mid of December.

Xalq Sigorta operates in the Azerbaijani insurance market since 2005. The company has the largest aggregated capital rate, which is formed at the rate of AZN10.68mln. The company also owns 7.5 percent of shares of Kapital Bank. According to the Azerbaijani Finance Ministry, in January-September, Xalq Sigorta collected premiums amounting to AZN 7.33mln, with payments to AZN1.24mln.

On 8 November, the official currency rate is 0,808.6 AZN/USD.

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