Volume of problem loans in Azerbaijan drops by more than 7%

Baku, Azerbaijan, Mar. 11

By Kheyraddin Nasirzade – Trend:

As of January 2019, volume of problem loans in Azerbaijan was reduced by 7.46 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 126.5 million manats, making up 1.57 billion manats. At the same time, the share of overdue loans for the same period decreased from 14.5 percent to 12.2 percent.

The total volume of loan portfolio grew by 10.5 percent, amounting to 12.88 billion manats.

The share of state-owned banks amounted to 2.06 billion manats (16 percent), that of the private banks to 10.4 billion manats (81.3 percent) and of non-bank credit organizations to 343.7 million manats (2.7 percent).

Lending in national currency as of January 2019 amounted to 7.06 billion manats (an increase by 16.87 percent since January 2018) and the share in the loan portfolio of banks reached 62.58 percent.

Lending in foreign currency amounted to 4.821 billion in manat equivalent (an increase by 1.36 percent since January 2018) with a specific weight of 37.42 percent.

The volume of short-term loans exceeded 2.582 billion manats, and that of long-term loans exceeded 10.302 billion manats.

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

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