BAKU, Azerbaijan, May 18
By Zeyni Jafarov - Trend:
Lending through letters of credit in Azerbaijan shrank 3.7 times or 15.7 million manat ($9.23 million) in the first quarter of 2021, compared to the same period of 2020, settling at 5.8 million manat ($3.41 million), the Central Bank of Azerbaijan (CBA) told Trend.
During this period, factoring operations amounted to 32.8 million manat ($19.3 million), which is 3 percent less compared to a year earlier, the bank said.
“As of early April 2021, the volume of lending by banks to clients' settlement accounts to pay for settlement documents in case of insufficient or absence of funds on the borrower's account (credit overdraft) amounted to 31.5 million manat ($18.5 million), having halved on annual basis. The share of these loans in lending to the real sector amounted to 0.2 percent, showing an annual decrease of 0.2 percent,” the CBA said.
The volume of lending to the financial sector in the reporting period increased by 4 percent on annual basis and reached 456.5 million manat ($268.5 million).
Total lending to the real sector of Azerbaijan’s economy in the first quarter of 2021 amounted to 14.7 billion manat ($8.64 billion), a decline of 5.8 percent or 909.4 million manat ($534.9 million) year on year. The largest share of loans in Azerbaijan as of early April fell on households, amounting to 46.6 percent, or 6.87 billion manat ($4.04 billion) of the total volume of lending to the real sector.
(1 USD = 1.7 AZN on May 18)
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