Lending market of Azerbaijan expected to recover by year-end

Finance Materials 24 August 2020 08:20 (UTC +04:00)
Lending market of Azerbaijan expected to recover by year-end

BAKU, Azerbaijan, Aug. 23

By Eldar Janashvili - Trend:

The lending market is expected to recover in Azerbaijan by the end of 2020, the Azerbaijan Banks Association (ABA) told Trend.

The ABA noted that the scenarios for the next period vary considerably, because on the one hand, since June 2020 there has been a tendency for a slow down of the economic recession in many countries and the beginning of recovery processes, restructuring of global trade in accordance with new conditions, and on the other hand, negative signals and warnings about the beginning of the second wave of the COVID-19 pandemic.

That is why it is rather difficult to predict the dynamics of lending for 2020-2021, said the ABA.

Along with this, according to forecasts of some international organizations, the market is expected to recover by the end of 2020. According to experts, this process will be observed amid rising prices on the commodity markets, in particular, on the crude oil market.

The positive effect of this recovery on the Azerbaijani economy will lead to an increase in economic activity in the country and, in parallel, to an increase in lending, the ABA noted.

The ABA expects that the subsidized loans, which will be provided under the state guarantee, will also contribute to the growth of the overall portfolio.


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