Azerbaijan, Baku, June 20/ Trend , N.Ismaylova /
The average interest rate on loans issued by commercial banks in Azerbaijan is 20-24 percent, Director of the Azerbaijan Bank Training Center Javanshir Abdullayev said on June 20.
"According to the data provided by the Central Bank, the average rate on a credit makes 17 percent, but its calculation also takes into account the rates on loans granted by the Mortgage Fund and the National Fund for Entrepreneurship Development," said Abdullayev.
According to him, now the need for loans is growing, but their amount reduces, since banks back re-pay their loans and do not attract new loans, and the deposit is also low.
"The amount of problem loans since October of last year has started to increase, and this will continue until the end of the crisis, said the head of the Center. - If last year the share of overdue loans in the overall portfolio of the country was two percent, this year the figure had already exceeded three percent that already means more than 200 million manats problem loans."
According to him, the risk of problem loans is large for the sectors such as construction, building materials production, market of household appliances, furniture, car market.
"In order to prevent problems in the credit market, the right step was the decision to place part of the country's astrategic currency reserves in the local commercial banks," he said.
According to him, in other countries, 30-50 percent of bank loans are financed by the Central Bank, and therefore Central Bank's reducing rates affects the credit market.
"In Azerbaijan, the share of money of the Central Bank in the issued credits is less than three percent, and therefore, decreasing the interest rate slightly affected the whole market," said Abdullayev.
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