BAKU, Azerbaijan, June 8
By Zeyni Jafarov - Trend:
Lending through letters of credit in Azerbaijan shrank as of early May 2021, the Central Bank of Azerbaijan (CBA) told Trend.
According to the CBA, this indicator dropped by 3.2 times or 14.6 million manat ($8.6 million) on annual basis, settling at 6.7 million manat ($3.9 million).
In the reporting period, factoring operations amounted to 37.7 million manat ($22.1 million), which is 16 percent more than a year earlier, the bank said.
Meanwhile, 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) made up 35.5 million manat ($20.8 million), decrease of 1.7 times on annual basis, the CBA noted.
The share of these loans in lending to the real sector amounted to 0.2 percent, showing annual decrease of 0.2 percent.
Besides, the volume of lending to the financial sector in the reporting period increased by 25.9 percent on annual basis and reached 477.6 million manat ($280.9 million).
Total lending to the real sector of Azerbaijan’s economy in the first four months of 2021 amounted to almost 15 billion manat ($8.8 billion), decline of 159.3 million manat ($93.7 million) or 1.1 percent year on year.
The largest share of loans in Azerbaijan as of early May fell on households, amounting to 7.04 billion manat ($4.14 billion) or 47 percent of the total volume of lending to the real sector.
(1 USD = 1.7 AZN on June 8)
---
Follow the author on Twitter: @jafarov_zeyni