Industry lending growth resumed in Azerbaijan

Business Materials 12 July 2016 19:34 (UTC +04:00)

Baku, Azerbaijan, July 12

Azerbaijani banks slightly increased the industry and production lending by 0.3 percent up to 1.2 billion manats in May 2016 compared to April, the Azerbaijani Central Bank’s report said July 11.

The official exchange rate is 1.5114 AZN/USD as of July 12.

According to the report, the sector lending index has increased for the first time since early 2016. The volume of loans issued for industry and production, was nearly 1.9 billion manats in January 2016.

In total, the issuance of loans in that sector has decreased twofold for the year compared to May 2015. Some 6.7 percent of loans issued in the country account for industry and production, the report said.

According to the report, the largest part of the total loan portfolio of banks - 38.1 percent accounts for the consumer lending.

The retail loan volume decreased by 3.5 percent up to 6.9 billion manats in May compared to April and by 13.8 percent for the year, the report said.

According to the report, the construction and real estate sector (15.3 percent or 2.78 billion manats) ranked second in the total loan portfolio of banks. The trade and services (14.4 percent or 2.62 billion manats) ranked third.

Some 6.8 percent (1.24 billion manats) accounted for the loans issued in transport and communication, 2.3 percent (427.4 million manats) - agriculture and processing, 1.6 percent (288.3 million manats) - energy, chemistry, and natural resources, the report said.

According to the CBA, as of June 2016, the banks issued loans worth 18.2 billion manats, including 9.7 billion manats (53.17 percent) - in the national currency, while 8.5 billion manats (46.83 percent) - in freely convertible currency.

Some 37 banks operate in Azerbaijan (including two state-owned banks).