Azerbaijani Mugan Bank reduces rates on loans

Business Materials 22 June 2009 13:41 (UTC +04:00)

Azerbaijan, Baku, June 22 / Trend N. Ismayilova /

Azerbaijani Mugan Bank reacted to reduction of rate, average rate on loaning by the Central Bank, the bank's board chairman Elmir Hasanov said.

"After reduction of rate by the Central Bank, average rate on loaning in our bank was reduced 24-26 percent," Hasanov said.

Previous average percent rate on loans given in the bank hit 26-28 percent, he said.

"Presently, the bank will follow current standards both in loan and deposit policy given that situation has uncertain character on the market," Hasanov said.

The Azerbaijani Central Bank has reduced rate to 2 percent since May 25 to support macroeconomic balance, financial stability and preserve economic activity in the country given deflation processes in accordance with directions of monetary policy for 2009.  

Loan portfolio of Mugan Bank increased from 49 million manat to 68 million manat during 2008. Loan portfolio of Mugan Bank provided growth in the amount of 35 percent. As of early 2008 portfolio of the bank's deposits hit 24 million manat. It was reached to 40 million manat by late 2008. Growth on population's deposits hit 66.7 percent.

On June 22, the official exchange rate is 0.804 manat to $1.

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