Volume of bad loans down in Azerbaijan

Finance Materials 7 January 2021 19:10 (UTC +04:00)
Volume of bad loans down in Azerbaijan

BAKU, Azerbaijan, Jan. 7

By Zeyni Jafarov - Trend:

As of early December 2020, the volume of bad loans in Azerbaijan on an annualized basis decreased by 34.6 percent (487.5 million manat that’s $286.8 million), amounting to 922.9 million manat ($542.9 million), Trend reports citing the statistical bulletin of the Central Bank of Azerbaijan (CBA).

The total loan portfolio of the banking sector and non-bank credit organizations for the year also decreased by 2.9 percent, reaching 14.7 billion manat ($8.6 billion).

The share of state-owned banks in issued loans amounted to 2.8 billion manat that’s $1.6 billion (19.3 percent of the total portfolio), private banks - 11.5 billion manat that’s $6.8 billion (78.1 percent), non-bank credit organizations - 376.6 million manat that’s $221.5 million (2.6 percent).

The volume of loans issued in national currency by December 1, 2020, amounted to 10.3 billion manat that’s $6.05 billion (an increase of 4.8 percent compared to early December 2019) while the share in the loan portfolio of banks is 70 percent.

The loans in foreign currency were issued in the amount of 4.4 billion in manat equivalent ($2.6 billion) during the reporting period (a decline of 17.1 percent compared to early December 2019) with a specific weight of 30 percent of the loan portfolio of the banks.

The volume of short-term loans in Azerbaijan amounted to 1.8 billion manat ($1.05 billion) in national currency and $733.1 million in foreign currency while the volume of long-term loans in national and foreign currencies - 8.5 billion manat ($5 billion) and $3.7 billion manat, respectively.


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