BAKU, Azerbaijan, Sept.13
By Zeyni Jafarov - Trend:
The volume of issues letters of credit by banks in Azerbaijan plunged 3.4 times or by 17 million manat ($10 million) from January through August 2021, compared to the same period of 2020, from 24 million to 7.1 million manat ($14.1 million - $4.17 million), the Central Bank of Azerbaijan CBA) told Trend.
At the same time, factoring operations increased by 56 percent or 14 million manat ($8.23 million) on annual basis, from 25 million to 39 million manat ($14.7 million – $22.9 million), the report said.
“Banks lending to clients' settlement accounts to pay for settlement documents in case of insufficient or absence on the borrower's account (overdraft credit) decreased over the year by 33 percent, or 14 million manat ($8.23 million), having approached 29 million manat ($17 million). The share of overdraft in lending to the real sector amounted to 0.2 percent, having fallen 0.1 percent over the year,” the CBA said.
In total, the volume of loans issued to the real sector of the Azerbaijani economy for the first 7 months of this year has exceeded 15 billion manat ($8.82 billion), which is 782 million manat ($460 million) or 5.4 percent more compared to the first 7 months of last year, said the CBA report.
The bulk of the loans issued in the country over the specified period fell on the household sector, having amounted to 7.5 billion manat ($4.41 billion) or 48.6 percent of the total volume of loans issued to the real sector of the country.
The loan investments in the financial sector increased on annual basis by 47 percent, or 150 million manat ($88.2 million) - from 320.6 million to 471 million manat ($188.5 million - $277 million), the report said.
(1 USD = 1.7 AZN on Sept. 13)
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