Loans continue cheapening in Azerbaijan
Baku, Azerbaijan, May 5
By Emin Aliyev - Trend:
As of April 1, 2014, the Azerbaijani banks reduced interest rates on loans in local and foreign currencies compared to April 1, 2013.
The average rate on bank lending to the Azerbaijani economy in national currency totalled 14.45 percent compared to 14.85 percent as of April 1, 2013, according to a statistics report from the Central Bank of Azerbaijan (CBA).
The average rate on bank lending in freely convertible currency was 14.79 percent compared to 15.30 percent as of early April 2013.
As of April 1, 2014, the average rate on bank lending to legal entities in national currency amounted to 11.57 percent compared to 12.35 percent as of April 1, 2013.
The average rate on bank lending of corporate clients in freely convertible currency was 10.97 percent compared to 12.45 percent in early April 2013.
As of April 1, 2014, the average rate on bank lending to physical entities in national currency was 17.9 percent compared to 18.61 percent as of April 1, 2013.
The average rate on bank loans to individual clients in freely convertible currency was 20.38 percent compared to 21.6 percent in early April 2013.
Most of all loans are granted to households in Azerbaijan. As of January-March 2014, households received 40.8 percent or 6.510.2 billion manat, according to the CBA.
The trade and services (14.3 percent or 2.272.8 billion manat) ranks second, the construction and real estate sector (13.1 percent or 2.095.9 billion manat) ranks third.
The industrial and production sector received 11.5 percent of the total lending amount of the Azerbaijani real sector, which hits 1.830.6 billion manat in nominal terms.
It should be stressed that as 2014 was announced as the Year of Industry, a lending volume was increased in this sector. For comparison, as of 2013, the industrial sector received only 9.8 percent of the total amount of loan investments in the country's economy.
Some 3.6 percent (579.2 million manat) fall to the transport and communication, 4.7 percent (741.5 million manat) - agriculture and processing, 1.8 percent (286.9 million manat) - energy, chemistry, and natural resources, 10.2 percent or 1.626 billion manat loans - on the other spheres
The official exchange rate is 0,7843 AZN/USD on May 5.
translated by NH
edited by CN