Amount of overdue loans up in Azerbaijan's credit market

Baku, Azerbaijan, March 7

By Azad Hasanli – Trend:

In January 2018, Azerbaijan's credit organizations reduced loan disbursements by 30 percent up to 11,656.1 million manats compared to January 2017, the Azerbaijani Central Bank said in a report.

According to the report, the amount of overdue loans increased by 3.8 percent up to 1,695.9 million manats for the year. The share of overdue loans increased from 9.8 percent to 14.5 percent for the same period.

In 2017, the loan portfolio of banks and non-banking credit organizations amounted to 11,656.1 million manats. As for overdue loans, the amount of overdue loans varied from 1.6 billion manats to 1.89 billion manats for 2017.

Lending in national currency amounted to 6,899.9 million manats in 2017 (a 17.9 percent decrease for the year) with a specific weight of 59.2 percent.

Lending in foreign currency amounted to 4,756.3 million manats (a 1.8-fold decrease for the year) with a specific weight of 40.8 percent.

The amount of short-term loans amounted to 2,156.2 million manats, long-term loans - 9.5 billion manats.

Distribution of the loan portfolio by economic sectors (in late January 2018):

Meanwhile, 16 percent (1,861.9 million manats) of all loans in the country accounted for state banks in Azerbaijan, 80.5 percent (9,380.3 million manats) - private banks, 3.6 percent (413.9 million manat) - non-bank credit organizations.

Thirty banks operate in Azerbaijan, including two state-owned banks and over 120 non-banking credit organizations.

(1.7 AZN = $1 on March 7)