Azerbaijani banks continue reducing consumer lending volumes
Baku, Azerbaijan, Oct. 11
By Anvar Mammadov - Trend:
Azerbaijani banks increased the consumer lending volume by 8.2 percent in January-July 2015 compared to the same period of 2014, said the Central Bank of Azerbaijan's report.
The consumer lending volume decreased by 1.16 percent in August compared to July.
The consumer lending volumes decreased after the devaluation of the manat rate [the dollar rate increased by almost 34 percent February 21]. It increased by almost 9 percent in February. The banks reduced the consumer lending volume by 1.4 percent in March, 1.2 percent in April, 1.88 percent in May, 1.97 percent in June and 1.5 percent in July.
The share of consumer loans in a total volume of the banks' loan investments decreased from 43 percent as of February up to 38.2 percent as of August and amounted to 7.68 billion manat.
For comparison: their share accounted for 41 percent, and the amount of issued loans - 7.1 billion manat in January-August 2014.
The trade and services (14.2 percent or 2.85 billion manat) ranked second on the share in the total loan portfolio of banks. The construction and real estate sector (13.7 percent or 2.74 billion manat) ranked third.
Around 10.6 percent of the total volume of lending to the real sector of Azerbaijan was directed to the industry and production. In nominal terms it amounts to 2.14 billion manat.
The share of transport and communication hit 5 percent (1 billion manat), agriculture and processing reached 4.7 percent (949 million manat), energy, chemistry, and natural resources - 1.2 percent (242.7 million manat).
According to the CBA, as of August 1, 2015, the total volume of loans granted by banks totaled 20.1 billion manat, including 11.43 billion manat (56.87 percent) - in national currency and 8.67 billion manat (43.13 percent ) - in freely convertible currency.
There are 43 banks in Azerbaijan (two of them are state-owned).
The official exchange rate is 1.0478 AZN/USD Oct. 11.
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