Lending to Azerbaijan's financial sector up year on year
BAKU, Azerbaijan, Nov. 17
By Zeyni Jafarov – Trend:
The volume of lending to the financial sector in Azerbaijan amounted to 314 million manat ($184.8 million) as of October 1, 2020, rising by 7.1 percent over the year, Trend reports citing data from the Central Bank of Azerbaijan (CBA).
According to the bank, the volume of lending transactions through letters of credit (L/Cs) as of the above date made up 27.1 million manat ($15.9 million), reflecting a decrease in annual circulation by 2.5 percent or 700,000 manat ($412,000).
The share of lending to the real sector through letters of credit made up 0.2 percent and hasn’t changed compared to the same period of last year.
Besides, factoring operations amounted to 29.5 million manat ($17.3 million) as of the early October this year, 15.5 percent less than in the first nine months of 2019.
According to the CBA report, the volume of lending by banks to a client’s current accounts for payment of settlement documents by him in case of insufficient or absent funds on his current account (overdraft) for the reporting period stood at 41.6 million manat ($24.4 million), showing a year-on-year decline by 17.6 percent or 8.9 million manat ($5.2 million).
The share of overdraft loans in lending to the real sector made up 0.3 percent, down 0.1 percentage points compared to the same period of 2019.
Meanwhile, the total volume of lending to the real sector made up 14.87 billion manat ($8.7 billion).
(1 USD = 1.7 AZN on Nov. 17)