CBA: Azerbaijan observes decrease in interest rates
Azerbaijan, Baku, Oct. 6 / Trend N.Ismayilova /
Azerbaijan records a decrease in interest rates on loans issued by the local banks, the head of Department for Supervision of Credit Institutions under the Central Bank of Azerbaijan (CBA) Rashad Orujov said.
"Since June 1, the maximum limit of interest rates on deposits, which guaranteed by the Azerbaijan Deposit Insurance Fund (ADIF), was reduced to 12 percent, on the backdrop of which we observe a cheaper interest rates on deposits," he said.
According to Orujov, the rates on new granted loans have already been reduced, but in general, observing the dynamics of changes in average interest rates, it is difficult to notice, since the proportion of new loans is negligible.
According to him, the local banks are lending to the corporate sector by 15-17 percent, while interest rates on consumer loans make up about 33 percent.
"Consumer credit is regarded as more expensive and risky product, so rates on it higher than the rates on corporate loans, but a decrease is also expected on this type of product," he said.
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