Crediting of Azerbaijan’s energy sector up by almost twofold

Business Materials 15 July 2017 15:12

Baku, Azerbaijan, July 15


Crediting of the fields of energy, chemistry and natural resources in Azerbaijan increased by almost twofold in May 2017, as compared to the same period of 2016 and by 1.3 percent as compared to April 2017, according to a report of the country’s Central Bank.

The report says that about 556.4 million manats accounted for the share of loans in this sector. The specific weight of loans, issued for the projects in the spheres of energy, chemistry and natural resources, was 3.8 percent. In May 2016, this figure was 288.3 million manats (1.6 percent).

A major part of loans still accounts for consumer loans in Azerbaijan – 5.17 million manats (decrease by 25.5 percent as compared to the same figure in 2016). The figure decreased by 1.2 percent as compared to April 2017.

The reduction in consumer lending in Azerbaijan began after the first devaluation of Azerbaijan’s national currency – the manat [on February 21, 2015, when the exchange rate of the US dollar against the manat increased by almost 34 percent]. However, a lion’s share of banks’ total loan portfolio – 34.9 percent – still accounts for the share of consumer loans [as of late May 2017]. This figure was 38.1 percent in May 2016.

The sphere of trade and services (14.8 percent or 2.19 billion manats) ranks second and is followed by the construction and real estate sector (11.9 percent or 1.76 billion manats).

In May 2017, loans for transportation and communication amounted to more than one billion manats (6.8 percent), while the loans issued for the industrial and production sector totaled 1.1 billion manats (7.3 percent). Agriculture and processing sphere accounted for 3 percent (438.5 million manats) during the period.

(1.7022 manats = $1 on July 15)