Strengthening of competition in Azerbaijan’s banking market leads to decrease in interest rates on loans

Business Materials 12 December 2013 20:43 (UTC +04:00)

Baku, Azerbaijan, Dec. 12

By Emin Aliyev - Trend:

Cheapening of business credits contributes to economic development of Azerbaijan, a board member, director of Retail Business Development Department of Bank VTB (Azerbaijan), Ilnur Salyahov said on Dec. 12.

"A decrease in average lending rates is being observed in corporate business lending: in 2012-2013 the average rates fell to a couple of percent thanks to increased competition in the market. In my opinion these are positive changes both for the regulator and for the end users of services - borrowers, for whom the cost of business projects has decreased significantly. Therefore there is also a revival in the construction industry (construction of both housing and business facilities), and the development of production, and, of course, trade," Salyahov said.

In January-October 2013, the average rate on bank lending to the country's economy in national currency amounted to 14.33 percent compared to 15.21 percent as of November 1, 2012, according to the Central Bank of Azerbaijan (CBA).

The average rate on bank lending in freely convertible currency was 14.55 percent compared to 15.45 percent in early November 2012.

Translated by E.A.