Azerbaijani subsidiary of Russian bank to reduce interest rates

Business Materials 11 November 2015 16:46 (UTC +04:00)

Baku, Azerbaijan, Nov. 11

By Anvar Mammadov - Trend:

VTB Bank (Azerbaijan) plans to reduce the maximum interest rate on its loans, Tural Veliyev, director of the bank's retail business development department and member of its board of directors, told Trend on Nov. 11.

Veliyev said that at present, the maximum rate on loans from the bank is 28 percent, while the average rate is 25 percent.

"The rates on our credit products begin at 20 percent," he stated. "Depending on the client category and customer, they can reach 28 percent. The maximum interest rate on loans is planned to be reduced to 25 percent in the future. At present, the only problem is that there are no free manat resources on the market. This causes a rise in interest rates on loans."

He claimed the bank also plans to raise interest rates on deposits in the future, but this will take place as part of specific campaigns.

"Our bank's interest rates on deposits in manat and freely convertible currency are 12 and 8 percent, respectively," he remarked. "But in the future, we plan to encourage clients by raising interest rates. This will be carried out as part of special campaigns. There will be no fundamental change in the rates on products."

"Bank VTB (Azerbaijan)" is a subsidiary of "VTB Bank". The shareholders of "VTB Bank (Azerbaijan)" are "VTB Bank" and "AtaHolding". "Bank VTB (Azerbaijan)" renders the services to the corporate business, small business and private clients. Today the bank is represented by 14 subsidiaries and the Customer Service Office under the main service.

As of late September, the registered capital of the bank amounted to 50.82 million manat, total capital - 53.07 million manat. The bank's assets amounted to 369.96 million manat, the loan portfolio - 347 million manat and the deposit portfolio - 60.7 million manat for the third quarter.

The official exchange rate is 1.0504 AZN/USD Nov. 11.

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