Azerbaijani NBCO reduces assets
Baku, Azerbaijan, Aug. 15
By Eldar Janashvili – Trend:
Aqrar Kredit, a non-bank credit organization (NBCO) in Azerbaijan, specializing in issuing loans in the agricultural sector, reduced its total assets by 5 percent in 2018 compared to 2017, Trend reports referring to the organization’s audited report.
According to the report, total assets as of December 31, 2018 amounted to 13.517 billion manats, which is 706.37 million manats less than in 2017.
In the structure of assets, their overwhelming majority (94.5 percent) consists of assets received from the International Bank of Azerbaijan (IBA), which decreased by 5.7 percent and amounted to 12.78 billion manats. Debtors' debts expected from IBA fell by a quarter and amounted to 239.54 million manats.
The volume of cash and cash equivalents increased 2.7 times to 178.6 million manats. Long-term assets left for sale increased by 4 percent and amounted to 124.44 million manats. Client loans amounted to 80.66 million manats (an increase of one percent).
Funds from banks decreased by one percent and amounted to 12.18 million manats. The size of investments, as in the preceding year, amounted to 24 million manats.
The amount of intangible assets decreased by 11 percent and amounted to 53.41 million manats. Other assets amounted to 123.58 million manats (annual growth - 44.3 percent).
Moreover, the obligations of Aqrar Kredit decreased in 2018. Its total liabilities as of January 1, 2019 amounted to 13.494 billion manats (a decline of 5 percent).
In the structure of liabilities, their overwhelming majority (99.7 percent) consists of issued debt securities in the amount of 13.45 billion manats, decreasing by 5 percent compared to the previous year. The funds intended for transferring to financial institutions amounted to 11.65 million manats (growth over the year at 4.8 percent).
Client accounts amounted to 5.18 million manats, having increased by a quarter. Other liabilities, including taxes, amounted to 26.8 million manats, having increased by almost 3 times. As noted in the report, total capital decreased by 3.5 percent to 23.28 million manats.
In accordance with the Decree No. 570 of the president of Azerbaijan "On rehabilitation measures in connection with the preparation for privatization of state-owned shares of the International Bank of Azerbaijan Open Joint Stock Company” dated July 15, 2015, the International Bank of Azerbaijan OJSC, removing the problematic assets from the bank’s balance stipulated for the phased repayment of liquid assets in the appropriate amount, in exchange permits them to be managed and transfers its claim rights to borrowers for these problematic assets of AqrarKredit CJSC.
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