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Azerbaijani banks increase lending to the economy by a third per year

Business Materials 12 December 2013 16:47 (UTC +04:00)

Baku, Azerbaijan, Dec. 12

By Emin Aliyev - Trend:

Azerbaijani banks have increased lending to the economy by 20.8 per cent in January-October 2013 and by 30 per cent per annum.

According to the Azerbaijani Central Bank, for the reporting period, the banks delivered loans totalling 14.991.4 billion manat including 10.707.8 billion manat (71.43 per cent) in national currency and 4.283.6 billion manat (28.57 per cent) in freely convertible currency.

For comparison, the figure was equal to 11.643.5 billion manat (7.895.2 billion manat in national currency and 3.748.3 billion manat in freely convertible currency) in Jan.-Oct. 2012, and as of early 2013 - 12.243.7 billion manat (8.422.8 billion manat in the national currency and 3.820.9 billion manat in freely convertible currency.

Of the total portfolio, loans worth 783.2 million manat (5.22 per cent) were overdue compared to 763.7 million manat as of January-October 2012. Statistics of overdue loans do not include similar loans of the non-banking credit institution Aqrarkredit. Overdue loans increased by 2.55 per cent per year.

Short term loans amounted to 3.375.5 billion manat including overdue loans worth 364.5 million manat, compared to 3.277.6 billion manat including overdue loans worth 414.6 million manat, as of the same period of 2012. Short term credit in the economy increased 2.99 per cent per year. As of early November 2013, 29.86 per cent of short term loans were in freely convertible currency (1.007.9 billion manat).

As of November 1, long term loans amounted to 11.615.8 billion manat including 418.6 million manat in overdue loans, compared to 8.366 billion manat including 349.1 million manat overdue loans as of Jan.-Oct. 2012.

Long term loans increased 38.84 per cent per year. As of early November 2013, 28.2 per cent of long term loans accounted for freely convertible currency (3.275.6 billion manat).

According to the CBA, the credit portfolio of the only state bank in the country, the International Bank of Azerbaijan, hit 5.137.8 billion manat with a specific weight of 34.3 per cent, while private banks obtained the loans worth 9.420.4 billion manat with a specific weight of 62.8 per cent. The remaining 2.9 per cent fell to the share of non-bank credit organisations. They delivered 433.1 million manat.

Most of all loans are granted to households in Azerbaijan. According to the CBA, as of January-October 2013, households received 39.3 per cent or loans worth 5.886.7 billion manat.

The construction and real estate sector (15.4 per cent or 2.302.9 billion manat) ranks second, the trade and services (14.9 per cent or 2.227 billion manat) ranks third.

It should be stressed that the industrial and production sector received 9.7 per cent of the total lending amount of the Azerbaijani real sector which hit 1.456.4 billion manat in nominal terms.

Some 3.3 per cent (497 million manat) fell to transport and communication, 4.8 per cent (722.5 million manat) - agriculture and processing, 2.1 per cent (307.8 million manat) - energy, chemistry and natural resources, 10.5 per cent or 1.574.1 billion manat loans - on to other spheres.

The official exchange rate is 0.7843 AZN/USD on Dec. 12.

Translated by NH

Edited by SM

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