Azerbaijan, Baku, 14 November / corr Trend N.Ismayilova / The National Bank of Azerbaijan (NBA) gave an order to the country's bank on intensification of control and toughening of terms of lending for purchase of automobiles, the bank said.
Having taken this measure, NBA tries to reduce risks in Azerbaijani banks and protect them from influence of global financial crisis. The banks, taking the most active part in automobile lending, are compelled to reconsider the terms of financing and some ones even suspended lending.
One of demands of NBA was reduction of terms of lending from five to three years through increase of initial payment from present 20%. In connection with reduction of rate to 10%, NBA offers to reduce interest rates of loans for automobiles to 15%.
Atra Bank suspended granting of loans for purchase of automobiles two weeks ago and Azerbaijan Senayye Bankasi - about a month ago.
NBC Bank continues lending for purchase of automobiles in Nurgun Motors company for the term up to five years at rate of 23%.
Nikoil Bank allots loans for automobiles for the term of a year in European currency at rate of 20% of income. Earlier, the bank lent for longer term, but lending has been suspended now
Kapital Bank stopped lending for purchase of automobiles over 10 days ago, but contracts, which were concluded earlier, remain in force and will not be reconsidered. The bank lent on the following terms: for the term of two years in AZN at rate of 13% of income and for three years in AZN at rate of 12%.
Standard Bank increased annual interest rates of loan for purchase of automobiles from 18% to 19%, an initial payment - from 20% to 35%, and the term of lending was reduced from five to three years. All terms of automobile lending (percent and terms) will be reconsidered in a week. Nevertheless, it is not planned to reconsider the earlier contracts.
Exchange rate of US dollar was AZN 0.8093 on 14 November
The correspondent can be contacted at [email protected]