Azerbaijan's banking sector attracts foreign loans worth $734.8mln

Business Materials 31 March 2010 15:44 (UTC +04:00)

Azerbaijan, Baku, March 31 / Trend I.Khalilova /

Based on the payment balance publicized by the Central Bank of Azerbaijan (CBA), as of 2009, the special weight of direct government and state-secured loans, credit and loans attracted to the private sector, deposits and other investments made up 48.49 percent of the total foreign investment, the CBA reported. The total amount of investments made up $2729.8 million which is lower by 23.8 percent compared to the index of 2008.

Some of $646.8 million or 11.5 percent was attracted by the government and under the state guarantee. Share of unsecured loans made up $349.8 million, with 7.4 percent decrease from 2008.

The volume of unsecured loans declined to 2.3 times, amounting to 41.0209 billion. Some $77million of this figure attracted from the foreign banks for financing work under the international oil and gas contracts. These funds were directed to finance the State Oil Company of Azerbaijan's (SOCAR) projects, which are implemented in Georgia and Turkey. 

In 2009, the banks attracted foreign loans worth $734.8 million compared to $1.2785 billion in 2008, and joint ventures and firms attracted credits worth $209.1 million (375.9 million in 2008).

During the report period, an oil bonus worth $1 million was received in 2009 compared to $3.5 million in 2008.

The total amount of direct investment and foreign loans involved in the country's economy amounted to 45.6299 billion, down 25.6 percent compared to 2008.

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