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Azerbaijan sees growth of long-term loans to legal entities in real estate sector

Finance Materials 24 February 2021 17:20
Azerbaijan sees growth of long-term loans to legal entities in real estate sector

BAKU, Azerbaijan, Feb. 24

By Zeyni Jafarov - Trend:

The volume of loans issued to legal entities engaged in the real estate sector amounted to 2.09 billion manat ($1.2 billion) in Azerbaijan in 2020, Trend reports citing a statistics report of the Central Bank of Azerbaijan (CBA).

According to the CBA, this figure is by 154.3 million manat ($90.8 million), or eight percent, more compared to 2019.

After deducting problem loans, as well as loans issued by non-bank credit organizations, 16.6 million manat ($9.8 million) accounted for short-term loans. Some 6.5 million manat ($3.8 million) of that volume were issued in national currency, 10.1 million - in foreign currency.

Long-term loans issued to legal entities engaged in the real estate sector amounted to 84.3 million manat ($49.6 million) and this figure is by 2.6 times more than in 2019. Loans in the national currency were issued in the amount of 3.1 million manat ($1.8 million), while the share of foreign currency accounted for 81.2 million manat ($47.8 million).

Loans in this sector were mainly issued to private institutions and transactions were carried out mainly in foreign currency. In total, transactions carried out in foreign currency amounted to 90.4 percent (91.3 million manat that’s $53.7 million) of the total amount of lending to the real estate sector.

The share of lending to the real estate sector in lending to the real sector amounted to 14.4 percent, this figure increased by 0.9 percentage points compared to 2019.

In general, the volume of lending to the real sector in 2020 amounted to 14.5 billion manat ($8.5 billion), which shows an annualized decline of 767.8 million manat ($451.6 million) or five percent.

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