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Revival of credit market expected in Azerbaijan – ABA

Business Materials 17 October 2017 16:07 (UTC +04:00)
By the end of 2017 and in 2018, revival in lending to Azerbaijani economy is expected in the country’s banking sector
Revival of credit market expected in Azerbaijan – ABA

Baku, Azerbaijan, Oct. 17

By Azad Hasanli – Trend:

By the end of 2017 and in 2018, revival in lending to Azerbaijani economy is expected in the country’s banking sector, Zakir Nuriyev, head of the Azerbaijan Banks Association (ABA), told reporters in Baku Oct. 17.

He said that the revival of the credit market will compensate for the current reduction of interest income of banks, caused by decrease in lending volumes.

As of early September 2017, the Azerbaijani credit organizations’ loans totaled 12.38 billion manats, which is by 26.5 percent less as compared to the same period of 2016, the report of the Azerbaijani Central Bank (CBA) said.

At the same time, speaking about the decrease in interest income, Nuriyev noted that at present, such situation doesn’t cause any special difficulties for banks.

“At present, interest rates on deposits in foreign currency have sharply decreased, today we also observe reduction of interest rates on manat deposits,” he said. “The cost of loans in foreign and national currencies also decreased. Thus, banks could compensate for the reduction in the share of income from lending in the structure of interest income through reducing their interest expenses.”

Nuriyev also reminded that for today, banks have cash liquidity worth about 5.2 billion manats and investments in securities worth almost one billion manats.

The official exchange rate for October 17 is 1.7003 AZN/USD.

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