Baku, Azerbaijan, Jan. 11
By Azad Hasanli - Trend:
In November 2016, the volume of overdue loans in Azerbaijani national currency reached 637.9 million manats (AZN), which is a 24.6 percent decrease compared to November 2015, according to the report of the Central Bank of Azerbaijan (CBA).
The official exchange rate is 1.7742 AZN/USD as of Jan. 11.
The share of overdue loans in Azerbaijani manats reached 7.4 percent of the loan portfolio of the country’s banks and non-banking credit organizations as of late November 2016, the report said.
Overdue loans in foreign currency amounted to 804.5 million manats, which is a twofold increase during the same period, and their share reached almost 10.5 percent.
In general, the total volume of overdue loans in Azerbaijan amounted to 1.44 billion manats (annual growth of 17.3 percent).
By the beginning of December 2016, loans of credit institutions reached nearly 16.3 billion manats. Despite the annual decrease of 13.17 percent, the volume of loans increased by three percent over the last month.
Loans in Azerbaijan’s national currency prevail in the structure of the issued loans - they account for 52.85 percent (8.6 billion manats) of all loans. During the year, their volume decreased by 21.04 percent. The remaining funds are foreign currency loans (47.15 percent, or nearly 7.7 billion manats), their volume increased by 2.25 percent compared to November 2015.
This ratio was 73 and 27 percent in early 2015. But the share of foreign currency loans began increasing, reaching 49.3 percent as of the year after the February devaluation of the manat.
However, Azerbaijan’s Financial Market Supervisory Authority established a moratorium on the issuance of consumer loans in foreign currency to the individuals who do not have foreign exchange earnings and bank deposits since April 2016 and imposed a ban on mortgage loans in foreign currency since May.
As a result, the share of manat loans began to grow gradually.
As of Dec. 1, 2016, the volume of short-term loans amounted to 3.45 billion manats (including overdue loans worth 376.4 million manats), the volume of long term loans amounted to 12.8 billion manats (including nearly 1.1 billion manats of overdue loans).
According to the CBA, the credit portfolio of the state banks in the country amounted to 5.68 billion manats with a specific weight of 34.9 percent, while private banks issued loans worth 10.12 billion manats, where 4.3 billion manats falls to the share of banks with foreign capital. The remaining 2.9 percent falls to the share of non-bank credit organizations, which issued 473.4 million manats.