Growth rates of short-term lending to Azerbaijani economy is almost 5 times higher than long-term
Azerbaijan, Baku, June 9 / Trend I.Khalilova /
Azerbaijani banks increased lending to the Azerbaijani economy by 3.3 percent in April and by 0.4 percent compare to April 2010, the Central Bank of Azerbaijan (CBA) reported.
The share of overdue loans in the total portfolio of banks has grown over the month by 2.5 percent and by 51.5 percent over the year. Moreover, the growth of non-business loans is resumed since April 2010.
As of May 1, the banks provided loans totaling 8.639.6 billion manat (including 5.248.7 billion manat in national currency and 3.390.9 billion in hard currency) compared to 8.605.5 billion manat (5.017.9 billion manat in national currency and 3.348.1 billion manat in hard currency) as of April 1 and 8.605.5 billion manat (5.126.1 billion manat and 3.479.4 billion manat) as of May 1, 2010.
Of the total portfolio, loans worth 553.2 million manat (6.4 percent to the total volume of loans) were overdue compared to 539.9 million manat (6.45 percent) as of April 1, about 365.2 million manat (4.24 percent) as of May 1, 2010. Statistics of overdue loans does not include similar loans of non-bank credit institution Aqrarkredit.
Short-term loans as of early May amounted to 2.822.7 billion manat (including overdue loans worth 283.6 million manat) compared to 2.637.1 billion manat (including overdue loans worth 279.3 million manat) as of April 1, about 2.314.1 billion manat (174.7 milion) as of May 1, 2010. In April, the amount of short-term credit in the economy increased by 7 percent and by 21.98 percent compared to April 2010. Some 39.9 percent short-term credit and 35.5 percent of overdue loans were in hard currency as of late April.
Long-term loans amounted to 5.816.9 billion manat (including overdue loans worth 269.5 million manat) compared to 5.728.9 billion manat (260.6 million) as of April 1, about 6.291.2 billion manat (190.5 million) as of May 1, 2010. In April, the amount of long-term loans increased by 1.5 percent, compared to April 2010 - decreased by 7.5 percent. As of May 1, some 38.9 percent of long-term loans and 28.05 percent of overdue loans were in hard currency.
As of early May, the only state bank of the country (the International Bank of Azerbaijan) granted loans totaling 3.071.5 billion manat with a specific weight of 35.6 percent (increased by 1.7 percent in April), and private banks - 5.349 billion manat with a specific weight of 61.9 percent (increased by 4.1 percent). The remaining 2.5 percent fall on the share of non-bank credit organizations, which received loans worth 219.1 million manat.
Some 44 banks, one of which is semi-state bank, operate in Azerbaijan.