Baku, Azerbaijan, April 1
By Emin Aliyev - Trend:
Rates on consumer loans set in Georgia are the lowest amongst the regional countries, according to KPMG international auditing firm's analysis, conducted in March upon the Georgian National Bank's order.
This means the average nominal rate on secured consumer loans in the local currency in the country is 15.1 percent, while the actual annual percentage rate calculated taking into account all associated costs is 19.2 percent.
'By comparison, this index is the lowest in Kazakhstan among the regional countries', the analysis showed. 'It hits 14.4 and 17.1 percent respectively. Azerbaijan's average nominal rate on such loans is 19.4 percent with an actual annual percentage rate worth 21.7 percent'.
The highest rates on secured consumer loans in national currency were set in Armenia at 24 percent (nominal) and 29.3 percent (actual annual percentage rate) respectively. The Armenian banks do not issue such loans in a foreign currency.
The table below shows the average rates on secured consumer loans in local and foreign currencies:
Country |
Nominal rate on loans in national currency, % |
Actual annual percentage rate on loans in national currency, % |
Nominal rate on loans in freely convertible currency, % |
Actual annual percentage rate on loans in freely convertible currency, % |
Azerbaijan |
19.4 |
21.7 |
19.0 |
20.9 |
Kazakhstan |
14.4 |
17.1 |
14.4 |
17.1 |
Georgia |
15.1 |
19.2 |
15.1 |
19.2 |
Armenia |
24.0 |
29.3 |
- |
- |
As for unsecured consumer loans, the lowest rates in the region were set in Georgia. The nominal rate is 15.1 percent, while the actual is 18.8 percent per annum on loans in national and foreign currencies. Such loans are the most expensive in Armenia. The rates hit 24 and 29.9 percent respectively. Unsecured consumer loans are issued only in the national currency in Armenia and Kazakhstan.
The table below shows the average rates on unsecured consumer loans in local and foreign currencies:
Country |
Nominal rate on loans in national currency, % |
Actual annual percentage rate on loans in national currency, % |
Nominal rate on loans in freely convertible currency, % |
Actual annual percentage rate on loans in freely convertible currency, % |
Azerbaijan |
22.0 |
25.0 |
22.0 |
24.6 |
Kazakhstan |
16.4 |
19.2 |
- |
- |
Georgia |
15.1 |
18.8 |
15.1 |
18.8 |
Armenia |
24.0 |
29.9 |
- |
- |
Translated by NH
Edited by SM