Azerbaijani banks increase lending to economy by 11.5 percent during year

Business Materials 9 May 2012 09:57 (UTC +04:00)

Azerbaijan, Baku, May 9 / Trend, A.Akhundov /

Azerbaijani banks increased lending to the Azerbaijani economy by 2.6 percent in January-February 2012, while during the year by 11.5 percent, the Central Bank of Azerbaijan (CBA) website reported on Wednesday.

According to the CBA, as of early March 2012, the banks issued loans totaling 10.206.9 billion manat (including 6.616.8 billion manat in national currency (64.8 percent) in national currency and 3.590.1 billion manat in hard currency) 35.2 percent.

As of early January 2012, the figure was equal to 9.950.3 billion manat (6.426.5 billion in national currency and 3.523.8 billion manat in hard currency), and as of March 1, 2011 - 9.152.8 billion manat (5.888.6 billion manat and 3.264.2 billion manat in hard currency).

Of the total portfolio, loans worth 648.8 million manat (6.35 percent) were overdue compared to 633.8 million manat as of Jan.1, 509.4 million manat as of March 1, 2011. Statistics of overdue loans does not include similar loans of non-bank credit institution Aqrarkredit.

Short-term loans as of early March 2012, amounted to 3.058.3 billion manat (including overdue loans worth 331.9 million manat) compared to 3.051.2 billion manat (including overdue loans worth 326.2 million manat) as of Jan. 1, 2.501.4 billion manat (258.3 million) as of March 1, 2011. The amount of short-term loans increased by 22.3 percent during the year. As of early March 2012, 35 percent of short-term lending accounted for hard currency.

Long-term loans amounted to 7.148.6 billion manat (including 316.9 million manat overdue loans) compared to 6.899.1 billion manat (307.6 million overdue loans) as of Jan.1, 6.651.5 billion manat (251.1 million manat) as of March 1, 2011. The amount of long-term loans increased by 7.5 percent during the year. As of late February 2012, 35.24 percent of long-term lending fell to hard currency.

As of early March 2012, the only state bank of the country (the International Bank of Azerbaijan) granted loans totaling 3.396.5 billion manat with a specific weight of 33.3 percent, and private banks - 6.540.6 billion manat with a specific weight of 64.1 percent.

The remaining 2.6 percent fall to the share of non-bank credit organizations, which received loans worth 269.8 million manat.

The loans issued to the population in the Azerbaijani regions hit 1.296.9 billion manat as of March 1, 2012 or 12.7 percent of the total loan portfolio of banks.
In Baku, the figure was 8.909.98 billion manat, where the loans in national currency hit 5.645.1 billion manat.

The average interest rate on the country as of March was 16.2 percent, Baku - 15.5 percent.

The lending volume on Absheron economic region totaled 294.76 million manat at an average rate of 17.7 percent, Aran - 288.05 million manat at 22.8 percent, Mountain-Shirvan - 34.76 million manat at 21.3 percent, Ganja -Gazakh - 283.7 million manat at 21.5 percent, Guba-Khachmaz - 104.9 million manat at 21.1 percent, Lankaran - 124.4 million manat at 24.6 percent, Sheki-Zagatala - 82.5 million manat at 23.3 percent, Upper Karabakh - 11.99 million manat at 21.7 percent, Kalbajar-Lachin - 2.04 million manat at 17.3 percent, Nakhchivan - 69.8 million manat at 12 percent.

The official exchange rate is 0.786 manat to $1 on May 9.