Moody's expects increased bank lending Azerbaijan

Business Materials 26 August 2010 16:18 (UTC +04:00)

Azerbaijan, Baku, Aug. 26 / Trend N.Ismayilova /

The Moody's international rating agency wrote in a report released this week that bank lending in Azerbaijan will likely increase by 10-15 percent by late this year.

"Lending by banks with a Moody's rating increased by 5.4 percent last year," the report said. "This was mainly due to the International Bank of Azerbaijan's (IBA) efforts to expand its own lending."

The IBA plays an increasingly important role in supporting the national economy amid the global financial crisis, the agency asserted.

"Growth in lending slowed in private banks in 2009," the report added. "We expect a loan growth of around 10-15 percent in 2010. This estimate assumes faster growth in lending by private banks."

Five banks have a Moody's rating in Azerbaijan - Kapital Bank, Bank Respublika, Unibank, Texnika Bank and IBA.

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