Volume of problem loans decreases in Azerbaijani banks in 2021

Finance 26 January 2022 09:34 (UTC +04:00)
Volume of problem loans decreases in Azerbaijani banks in 2021

BAKU, Azerbaijan, Jan. 26

By Nazrin Israfilova - Trend:

The volume of problem loans in banks decreased by 14.89 percent in Azerbaijan in 2021 compared to 2020 from 893.1 million manat ($525.3 million) to 719.4 million manat ($423.2 million), Trend reports citing the Central Bank of Azerbaijan (CBA).

Loan portfolio of banks and non-bank credit organizations increased by 2.5 billion manat $1.5 billion (17.6 percent) for the year and amounted to 16.6 billion manat ($9.8 billion) compared to 14.1 billion manat ($8.3 billion) a year earlier.

Share of loans issued by the state banks in the total volume of loans reached 19.5 percent (3.3 billion manat $1.9 billion), private banks - 77.8 percent (13.3 billion manat $7.8 billion), non-bank credit organizations - 2.7 percent (460.7 million manat $271 million) as of 2021.

The loans issued in the national currency reached 12.7 billion manat ($7.5 billion) in 2021 compared to 10.2 billion manat ($6 billion) in 2020 while their share in the loan portfolio of banks reached 76.2 percent.

The loans were issued in the amount of more than 4.4 billion manat ($2.6 billion) in foreign currency during the reporting period (increase of 2.3 percent) with a share of 23.8 percent in the loan portfolio of banks.

Short-term loans amounted to 2.2 billion manat ($1.3 billion) in national currency and 955.9 million manat ($562.3 million) in foreign currency in the reporting period, while long-term loans in national and foreign currencies reached 10.4 billion manat ($6.1 billion) and 3.5 billion manat ($2.05 billion), respectively.