Volume of problem loans in Azerbaijan continues dropping

Baku, Azerbaijan, May 4

By Kheyraddin Nasirzade – Trend:

In March 2019, volume of problem loans in Azerbaijan was reduced by 8.9 percent compared to the same period for last year, Trend reports referring to the data provided by the Central Bank of Azerbaijan (CBA).

According to the report, the volume of problem loans was reduced by 152.2 million manats, making up 1.56 billion manats. At the same time, the share of overdue loans for the same period decreased from 14.7 percent to 11.9 percent.

The total volume of loan portfolio grew by 11.9 percent, amounting to 13.6 billion manats.

The share of state-owned banks amounted to 2.1 billion manats (16.1 percent), that of the private banks to 10.6 billion manats (81.3 percent) and of non-bank credit organizations to 343.7 million manats (2.6 percent).

Lending in national currency as of March 2019 amounted to 8.26 billion manats (an increase by 17 percent compared to March 2018) and the share in the loan portfolio of banks reached 63.24 percent.

Lending in foreign currency amounted to 4.798,9 billion in manat equivalent (an increase by 4.21 percent compared to March 2018) with its proportion of 36.75 percent.

The volume of short-term loans exceeded 2.618,3 billion manats, and that of long-term loans exceeded 10.439,7 billion manats.

Distribution of the loan portfolio by economic sectors (as of March 2019):

Thirty banks, including two state-owned banks and about 120 non-banking credit organizations, are operating in Azerbaijan.

($1=1.7 AZN on May 4)

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