Review of monetary sector in Azerbaijan (Jan-Sept. 2014)

The Central Bank of Azerbaijan (CBA) states that its foreign exchange reserves lost steady growth in September.

According to the CBA, as of October 1, the CBA currency reserve volume totaled $15.042 billion compared to $15.190 billion as of September 1, $15.193 billion (an absolute record) as of August 1, 2014, $14.152 billion as of January 1, 2013 and $11.695 billion as of January 1, 2013. A decrease in reserves was 1 percent ($148.5 million) in September. However, they increased by 6.29 percent ($890.4 million) in that period of 2014. As of 2014, foreign exchange reserves must reach $16 billion.

The CBA also slowed down the expansion of international reserves. They reduced by 1.9 percent in September compared to a 5.81 percent growth in August, a 1.09 percent growth in July and a 6.4 percent decrease in June.

As of September 2014, its international reserves amounted to $17.443 billion compared to $17.783 billion (a record level) as of August. For comparison, as of January they were assessed at $14.787 billion, the CBA said.

AzerTurkbank board has been changed in September after the bank's shareholder - an owner of 50 percent of shares of the Azerbaijani side changed.

Farhad Adigozalov was appointed acting chairman of the bank. He replaced Mehmet Sami Acarozmen. The deputy chairman's appointing acting chairman is considered a standard procedure in the bank, the bank said.

The bank's shareholders changed in summer 2014. The Azerbaijani Finance Ministry bought 50 percent of AzerTurkbank's shares, 46 percent of Agrarcredit's shares and four percent of TuranBank's shares. Later, the ownership of 50 percent equity in AzerTurkbank's capital was transferred by the Ministry of Finance to the State Property Committee.

"Transferring the ownership to the Finance Ministry is a normal process," director general of the Central Bank of Azerbaijan Rashad Orujov told Trend.

"This bank was created from the very beginning as a state bank," he said. "That period Agro-Industrial Bank owned a half of AzerTurkbank's shares. But after its liquidation, its ownership was transferred to its successor - Agrarcredit non-bank credit organization. Currently, the nominal holder of shares of the bank is the State Property Committee."

Orujov said that this decision is not related to the further privatization of AzerTurkbank.
Around 46 percent of the remaining shares belong to Turkish TCZiraat Bankası, four percent - Ziraat Bank Intenational AG (Germany).

The bank's future plans include increasing the bank's share capital. Currently, it is 12.24 million AZN. AzerTurkbank was established on May 25, 1995.

Currency market and AZN rate

The AZN rate has shown its stability compared to the U.S. dollar since early 2014. The AZN rate compared to the U.S. dollar appreciated by 1 point in January-September 2014, amounting to 0.7844 AZN per dollar as of the end of the reporting period.

The absolute minimum was established on January 30, 2014 at the level of 0.7842 AZN to $1 and since then it remained at this level several times.

As of 2013, the official exchange rate was 0.7845 AZN compared to 0.7850 AZN as of 2012 and 0.7865 AZN per $1 as of 2011. Thus, 2011 began with the official exchange rate of $1 to 0.7979 AZN.

The euro rate decreased by 6.88 percent compared to the AZN in January-September 2014. Thus, the exchange rate dropped from 1.0691 AZN to 0.9955 AZN per euro in January-September. A minimum rate for the reporting period - 0,9946 EUR / AZN was recorded on September 29, a maximum rate - 1,0932 EUR / AZN was reached on March 13. The fluctuations between maximum and minimum values ​​were 986 points.

However, it should be stressed that EUR / AZN exchange rate was characterized by strong volatility of dynamics as opposed to the dollar.

Foreign exchange market

According to the Baku Interbank Currency Exchange (BBVB), eight participating banks held 16 transactions at 42 trading sessions in Bourse E-System of Trades (BEST) in September 2014. The total trading volume in the USD / AZN (spot) currency section in the reporting month was 53.319 million AZN or $67.975 million.

The trading volume in the currency section increased by 2.3 times or by 29.811 million AZN in September compared to August. The average daily turnover in e-trading USD / AZN system was approximately $3.237 million in September, while the average amount of each transaction - $4.248 million.

The national currency exchange rate in USD / AZN_TOD in the reporting month remained unchanged - 0.7829 AZN for $1. The average rate of dollar compared to AZN was 0.7844 AZN in September 2014.

There was no trading on the interbank credit market functioning as part of BEST system in May-September 2014. The only deal (worth 2 million AZN) was held in April as in February 2014. This increased the turnover of the organized interbank credit market up to four million AZN this year.

The average monthly interest rate calculated on the basis of banks-market makers' bids for BakiBOR loans for up to 90 days, amounted to 10.80 percent per annum in AZN and 11.21 percent per annum in dollars in September 2014. BakiBID rate up to 90 days was 5.35 percent per annum in AZN and 5.08 percent in dollars.

As of 2014, BBVB turnover on dollars hits 266.511 million AZN or $334.915 million (spot). As of 2013, it was 403.644 million AZN or $512.752 million (spot), and taking into account the swap - 414.987 million AZN or $527.752 million.

Azerbaijani monetary market

The Central Bank's important objective is to manage the money supply at an adequate macroeconomic and financial stability level, in terms of continuous growth of foreign exchange reserves of the country and increased liquidity of the banking system.

The money supply rate (M2) (cash in circulation (outside banks) and remainders in the domestic currency on accounts of non-financial organizations, financial (excluding credit) organizations and physical entities) increased by 17.3 percent in January-September 2014 compared to the same period of 2013, the Azerbaijani Central Bank's statistics report said.

The money supply rate (M2) amounted to 17.367 billion AZN as of September 1, 2014 compared to 14.809 billion AZN as of September 2013, according to the report.

The official exchange rate is 0.7844 AZN/USD on Oct. 31.

The amount of cash money supply (M0) increased by 8.7 percent and amounted to 10.390 billion AZN compared to 9.560 billion AZN as of early October 2013.

As of January-September 2014, Broad Money Supply (M3) totaled 21.133 billion AZN or 20 percent more compared to January-September 2013 (17.613 billion AZN).

The transaction money (M1) increased by 9.35 percent per year and amounted to 12.834 billion AZN compared to 11.736 billion AZN as of September 2013.

Parameters of monetary market, in billion AZN:

Volume as of Oct 1, 2014

Money mass in extensive understating (М3)

21 133,1

Money mass on AZN (М2)

17367,8

Cash in AZN (М0)

10390

Non-cash in AZN

6 977,8

The expanded monetary base in Azerbaijan amounted to 11.646 billion AZN as of October 1, 2014, according to the Azerbaijani Central Bank's statistics report.

The monetary base increased by 8.9 percent per annum, according to the report. For comparison, this figure amounted to 10.697 billion AZN as of September 2013.

As of October 1, 2014, the monetary base in AZN amounted to 11.546 billion AZN compared to 10.697 billion AZN as of October 1, 2013.

During the reporting period the volume of money in circulation amounted to 11.042 billion AZN, while as of October 1, 2013, this figure was 10.137 billion AZN.

The ratio of cash money mass in circulation to the monetary base amounted to 94.8 percent as of October 1, 2014 and remained unchanged compared to October 1, 2013.

The bank reserves were equal to 593.2 million AZN which is 10.5 percent more than in September 2013 (536.8 million AZN).

Azerbaijan's loan market

Azerbaijani banks increased lending to the economy by 19.2 percent in January-September 2014, compared to the same period of 2013, the Azerbaijani Central Bank (CBA) said in its report.

The banks issued loans totaling 17.631 billion AZN, including over 12.980 billion AZN (73.6 percent) in national currency and 4.650 billion AZN (26.4 percent) in freely convertible currency as of Oct.1, according to the CBA report.

By comparison, the figure amounted to 14.793 billion AZN (around 10.508 billion AZN in national currency and 4.284 billion AZN in freely convertible currency) in January-September 2013.

Of the total portfolio, loans worth 973.2 million AZN (5.5 percent) were overdue compared to 795 million AZN (5.4 percent) as of January-September 2013.

The statistics of overdue loans does not include similar loans of Aqrarkredit non-banking credit institution. Overdue loans increased by 22.4 percent over a year.

Short term loans amounted to about 3.627 billion AZN (including overdue loans worth 426.8 million AZN) compared to around 3.428 billion AZN (including overdue loans worth 374.4 million AZN) as of January-September 2013. The volume of short term loans in the economy increased by 5.8 percent over a year.

The volume of long term loans exceeded 14.004 billion AZN, including 546.3 million AZN in overdue loans compared to about 11.365 billion AZN, including 420.5 million AZN of overdue loans as of January-September 2013. The long term loans increased by 23.2 percent over a year.

The credit portfolio of the only state bank in the country, the International Bank of Azerbaijan, exceeded 6.061 billion AZN with the specific weight of 34.4 percent, while private banks issued loans worth around 11.067 billion AZN with a specific weight of 62.8 percent.

The remaining 2.8 percent fell to the share of non-bank credit organizations. They issued 502.1 million AZN, according to the CBA.

The Azerbaijani banks increased the consumer lending volume by 27.5 percent in January-September 2014 compared to the same period of last year, a report posted on the website of the Central Bank of Azerbaijan says.

The share of consumer loans in a total volume of the banks' credit investments amounted to 41.1 percent or 7.253 billion AZN. For comparison, their share was 38.5 percent in January-September last year. The amount of issued loans hit 5.689 billion AZN with an annual growth of 40.73 percent, the report says.

The trade and services rank second (14.4 percent or 2.536 billion AZN) in the total loan portfolio of banks. The construction and real estate rank third (13.8 percent or 2.434 billion AZN).

Around 11.5 percent of a total lending volume to the real sector of the Azerbaijani economy was transferred to the industry and production. It is 2.021 million AZN in nominal terms.

The banks also increased their lending to the industry in connection with the announcement of 2014 as the Year of Industry in Azerbaijan. For comparison, the share of lending to the industrial sector accounted for 9.9 percent of total bank deposits in the country's economy in January-September 2013.

Around 3.3 percent (582.6 million AZN) accounted for transport and communication, 4.6 percent (807.6 million AZN) - agriculture and processing, 1.3 percent (221 million AZN) - energy, chemistry and natural resources over this period.

Azerbaijani banks increased lending to the real sector of the country's economy by 15 percent within nine months of 2014, director general of the Central Bank of Azerbaijan Rashad Orujov told Trend.

"The banks are actively lending business and the real sector," he said. "Currently, the share of these loans in the total loan portfolio of the sector is 73 percent."

The portfolio of consumer loans increased by only eight percent.

Today, the consumer lending volume in Azerbaijan is growing, but at a slower pace rather than business loans.

"We have taken actions since 2013 to reduce the dynamics of growth of consumer lending and inform the banks about real consequences of this growth," he said. "We have undertaken several regulatory measures to curb this dynamics. As a result, today the share of consumer loans in the total loan portfolio of banks is only about 27 percent. In principle, this is less than the level of the EBRD member-states. This ratio is 30 to 70 percent. The share of consumer lending is up to 40-45 percent on many developed markets, but in some cases even 50 percent of the total loan portfolio."

Around 30 percent in the structure of the portfolio of consumer loans account for mortgage loans and loans for housing construction. The total portfolio of consumer lending is 4.5 billion AZN. If we deduct 1.2 billion AZN allocated for housing construction from the total portfolio of consumer lending, around 3.3 billion AZN will remain.

"Moreover, the consumer loan portfolio increased by 28 percent in 2013," he said. But this year the growth dynamics has reduced twice - to 14 percent. "The CBA is interested to further support the mortgage lending to increase its volume. While excluding mortgage lending, the growth of consumer lending was eight percent."

"Around 75 percent in the structure of new loans delivered in 2014 account for business loans," he said. "This is the result of differentiation of the regulatory regime for business loans and consumer loans, which are more risky products. At present, the requirements for banks regarding business loans are easier and more attractive. But the reserve requirements are tougher for consumer loans."

The loans given to the public in Azerbaijan's districts totalled 2.878 billion AZN as of September 2014, or 16.3 percent of the banks' total loan portfolio, according to Azerbaijani Central Bank's (CBA) report for Jan.-September, 2014.

This figure is 43.6 percent more than the indicators for the same period of 2013. In Azerbaijani capital of Baku the figure stood at 14.752 billion AZN. Here the loans in national currency (AZN) amounted to 10.718 billion AZN.

In September 2014, the average interest rate on loans throughout the country was 14.3 percent, while in Baku this indicator stood at 13 percent.

The volume of lending in the Absheron Economic district totalled 571.87 million AZN at an average rate of 19.1 percent.

In other economic districts the lending indicator was as follows: Aran - 1.003 million AZN at a rate of 21.5 percent, Mountainous Shirvan - 113.22 million AZN at a rate of 23.7 percent, Ganja-Gazakh - 388.24 million AZN at a rate of 21.9 percent, Guba-Khachmaz - 128.7 million AZN at a rate of 21.3 percent, Lankaran - 301.6 million AZN at a rate of 23.5 percent, Shaki-Zagatala - 161.8 million AZN at a rate of 20.5 percent, the Upper Karabakh - 73.22 million AZN at a rate of 20.4 percent, Kalbajar-Lachin - 28.51 million AZN at a rate of 25.5 percent, Nakhchivan - 107.96 million AZN at a rate of 13.4 percent.

The Azerbaijani banks increased interest rates on loans in local currency and reduced the rates in foreign currency.

The average rate on bank lending to the economy of Azerbaijan in national currency amounted to 14.33 percent for this period compared to 14.14 percent as of October 1, 2013, the Central Bank of Azerbaijan's report said.

A real interest rate (deducting the annual inflation of 1.5%) accounted for 12.83 percent.

The average rate on bank lending in freely convertible currency made up 14.30 percent compared to 14.44 percent as of early October 2013.

The average rate on bank lending to legal entities in national currency amounted to 11.03 percent compared to 11.37 percent as of October 1, 2013. The average rate on bank lending to corporate clients in freely convertible currency amounted to 9.90 percent compared to 10.91 percent.

As of October 1, 2014, the average rate on bank lending to physical entities in national currency amounted to 18.48 percent compared to 18.02 percent as of October 1, 2013.

The average rate on bank loans to individual customers in freely convertible currency was 21.32 percent compared to 20.72 percent as of early October 2013.

The average lending rate of Azerbaijani banks exceeded the rate of the Central Bank by 4.09 times in January-September compared to 2.97 times as of 2013 and 3.04 times as of 2012.

The rate has reduced to 3.5 percent since July 30.

The positive results were also seen in the direction of reducing an interest rate on loans.

"Today, the average interest rate on the banks' total loan portfolio is 14.3 percent, while business loans - 10.8 percent," Director General of the Central Bank of Azerbaijan Rashad Orujov said. "That is, the business gets loans cheaper by 3.5 percent."

The interest rates on business loans declined by 2.3 percentage points - from 13.1 percent to 10.8 percent for the last four years.

"This is significant decline," he said.

The average interest rate on consumer loans decreased up to three percentage points - to 16 percent. This is also an important index.

"At present, the business has the opportunity to get cheaper money and more money," Orujov said.

Mortgage lending

The loans worth 78.6 million AZN were issued through the Azerbaijan Mortgage Fund (AMF) under the Central Bank in January-September 2014, which is 4.3 percent less than in the same period of 2013.

The mortgage loans worth 611.69 million AZN have been issued, including 112.9 million AZN in 2013, 74.77 million AZN in 2012, 95.64 million AZN in 2011 , 97.08 million AZN in 2010, 76.9 million AZN in 2009, 70.2 million AZN in 2007, and 5.6 million AZN in 2006 since the beginning of the financing through the Azerbaijan Mortgage Fund (AMF).

During the nine months of 2014 the total amount of refinancing of loans allocated by the banks earlier made up 94.4 million AZN, the report said.

The average amount issued by authorized banks of the AMF is 40.031 AZN, the average loan amount - 278 AZN, the interest rate - 6.82 percent, the average monthly payment - 318.8 AZN.

Around 39.5 percent of the total amount of loans issued through the Azerbaijan Mortgage Fund (AMF) accounted for the citizens engaged in the public sector.

The employees of private enterprises and firms (23.3 percent) rank second.

The employees of the financial sector received less mortgage loans (21.5 percent of the total volume).

Around 15.8 percent of the mortgaged housing accounted for the citizens employed in the oil sector of the economy.

The maximum amount of a conventional mortgage through the AMF is 50,000 AZN at a rate of 8 percent and a maturity of 25 years. The amount of a social mortgage is 50,000 AZN at an annual rate of 4 percent and the term of 30 years. The initial payment under the social mortgage is 15 percent, while for a conventional loans - 20 percent.

Mortgage terms are as follows: loans must be issued in national currency, AZN, and only to the citizens of Azerbaijan, the subject of the mortgage can only be an apartment or private house, the amount of the mortgage should not exceed 80 percent of the market value of the property, the monthly payment for a loan must not exceed 70 percent of monthly income of the borrower, the presence of an agreement on life insurance and other conditions.

Preferable conditions are granted to members of families of war victims, families of National Heroes of Azerbaijan, internally displaced persons, civil servants with at least a three years' experience, candidates and doctors of science, persons making special contributions to sport, as well as the military with at least a three-year service term. Each family having the right to such a mortgage loan can use the opportunity only once.

Today the authorized banks of the AMF are 28 banks. The participants of the mortgage market are also 21 insurance companies and 14 appraisal organizations.

Azerbaijan's banking sector

The economic cycles, seasonal factors and the attitude of investors, dictated by a variety of causes impact on the dynamics of deposits.

As of January-September 2014, the depositary base of Azerbaijani banks increased by 16.5 percent and 21.8 percent per annum, according to the Azerbaijani Central Bank's report.

As of October 1, 2014, the total amount of bank deposits and deposits of physical and legal entities totalled 14.531 billion AZN, compared to 11.929 billion AZN as of early October 2013, according to the CBA.

Around 7.416 billion AZN fell to cash, of which 2.494 billion AZN were demand deposits and 4.921 billion AZN - term deposits. The funds in foreign currency amounted to 7.114 billion AZN (1.747 billion AZN and 5.367 billion AZN, respectively).

The deposits of physical entities increased by 11.5 percent, while the volume of legal entities' deposits by 33 percent compared to January-September 2013. These indexes increased by 8.8 percent during January-September and by 24.5 percent respectively.

As of January-September 2014, the volume of physical entities' deposits in the banks amounted 6.959 billion AZN compared to 6.237 billion AZN in January-September 2013.

Around 4.421 billion AZN (63.52 percent) of the population's funds were placed in the national currency, while 2.538 billion AZN in freely convertible currency, according to the Central Bank. The Azerbaijani population's deposits in the national currency in the banks have prevailed over those in foreign currency since 2012.

The deposits of the population, being one of the most important indices of confidence in the banking system, also play a significant role as a resource for the banks to normally work.

The population's deposits, attracted to Azerbaijan's banking system from the country's regions (except for Baku), totaled 529.657 million AZN in Jan.-Sept. 2014, or 7.6 percent of the total bank deposits.

The figure rose by 22.4 percent compared to the same period of last year, according to the CBA report for the first nine months of 2014.

On Oct. 1, the volume of deposits in Baku was 6.43 billion AZN, while some 4014.2 million AZN accounted for the deposits in the national currency.

In this period, the average interest rate throughout the country stood at 8 percent, and 8.1 percent - in Baku.

Thus, the capital city Baku is still the leader on such indicators as attracting the population's deposits by the banks.

Among Azerbaijan's regions, the Absheron economic region (166.21 million AZN, the average rate of 8.6 percent per annum) is leading in terms of attracting the population's deposits.

In the mentioned period the volume of deposits in the Aran economic region totaled 160.42 million AZN at an average rate of 7.6 percent, Mountainous Shirvan - 15.2 million AZN at a rate of 6.1 percent, Ganja-Gazakh - 57.35 million AZN at a rate 5.8 percent, Guba-Khachmaz - 20.9 million AZN at a rate of 6.4 percent, Lankaran - 45.1 million AZN - the rate of 7.5 percent, Sheki-Zagatala - 23.7 million AZN - the rate of 5.6 percent, Upper Karabakh - 11.7 million AZN - 4.3 percent, Kalbajar-Lachin - 7.1 million AZN - 5.1 percent, Nakhchivan - 21.93 million AZN - the average rate of 4.1 percent.

As of January-September 2014, the volume of deposits of financial organizations amounted to 4.085 billion AZN compared to 3.067 billion AZN as of January-September 2013. The volume of deposits of non-financial organizations totalled 3.486 billion AZN compared to 2.624 billion AZN as of January-September 2013.

The total volume of deposits of legal entities totalled 7.571 billion AZN compared to 5.692 billion AZN as of January-September 2013.

As of October 1, 2014, the Azerbaijani banks reduced rates on deposits in freely convertible currency and the national currency, according to the Azerbaijani Central Bank (CBA) report.

The average rate on deposits in AZN as of October 1, 2014 made up 8.85 percent compared to 9.45 percent as of October 1, 2013, the report said.

The real deposit rate (deducting the annual inflation of 1.5%) accounted for 7.35 percent.

The average rate on deposits in foreign currency amounted to 9.00 percent compared to 10.04 percent in early October 2013.

As of October 1, 2014, the average rate on deposits of physical entities in AZN made up 9.41 percent, while as of October 1, 2013, it was 9.90 percent. The average rate on deposits of individual customers in foreign currencies amounted to 9.98 percent compared to 10.40 percent as of early October 2013.

The average rate on deposits of legal entities in AZN made up 5.40 percent at the beginning of October this year compared to 5.69 percent as of October 1, 2013, the report said. The average rate on deposits of corporate clients in foreign currency amounted to 3.27 percent compared to 4.83 percent as of early October 2013.

The average deposit rate of Azerbaijani banks exceeded the upper limit of the interest rate corridor of the Central Bank (5%) by 3.35 percent per annum as of January-September compared to 2.42 percent as of 2013 and 2.99 percent as of 2012.

Banks' financial activity

There were 44 banks in Azerbaijan as of the third quarter of 2014: 42 commercial banks and two state-owned banks. There are 22 banks with foreign capital. The share of foreign capital ranges from 50 to 100 percent in seven of them, while up to 50 percent in 13 banks. There are also two local branches of foreign banks.

The total profit of Azerbaijan's lucrative banks exceeds the total loss of unprofitable banks by 11 times as of September 2014, Central Bank of Azerbaijan (CBA) said in its report.

The profit of 38 banks was 348.52 million AZN, while the loss of six banks stood at 31.33 million AZN, according to the report. This allowed the banking system to earn 317.19 million AZN of net profit.

The number of profitable banks increased by 2 compared to August 2014, and the total profit of the sector increased by 2.5 percent and reduced by 1 unit (an increase of 27.98 percent) since the beginning of the year. The number of unprofitable banks reduced by 2 in September 2014 and their total loss decreased by 26.2 percent and increased by 2 banks (6.6 times increase) since early 2014.

The number of profitable banks remained unchanged in September 2014, compared to the same month of 2013, while the total profit of this sector grew by 33.9 percent. The number of unprofitable banks has increased from five to six, while their total loss grew by 2.3 times.

Periods

Number of profitable banks

The total profit of the banking system (profitable banks)

Number of unprofitable banks

The total loss of the banking system (unprofitable banks)

Total profit (+) or loss (-) obtained by banks

November 1, 2013

38

260,29

5

-13,62

246,67

November 1, 2014

38

348,52

6

-31,33

317,19

The capitalization of Azerbaijan's banking sector increased by 20.25 percent in September 2014 compared to September 2013 and amounted to 3.792 billion AZN as of October 1, 2014, the Central Bank of Azerbaijan's (CBA) report for the nine months of 2014 says.

There were 42 banks with capital worth over 10 million AZN as of the reporting period, according to the Central Bank of Azerbaijan's statistics report. This increased by 1 unit compared to late September 2013. The specific weight of this category in the total volume of capital of all the country's banks amounted to 99.8 percent as of the reporting period.

The capital of one bank ranged from 5 million AZN to 10 million AZN, the capital of other bank ranged from 3.5 million AZN to 5 million AZN. The specific weight of this category in the total volume of capital of the country's all banks amounted to 0.1 percent as of the reporting period.

The CBA requirement to the minimum amount of aggregate capital of the banks is set at the level of 50 million AZN by late 2014.

As of Oct. 1, 2014, the assets of the Azerbaijani banking sector amounted to 23.51 billion AZN compared to 19.4 billion AZN compared to 9.4 billion AZN as of September 2013.

The bank assets increased by 21.2 percent per year, according to the Central Bank of Azerbaijan.

The basis of the assets of the banking sector (69.4 percent) accounted for loans delivered to the clients in the amount of 16.31 billion AZN (20.36 percent growth per year), investments (2.01 billion AZN with 8.54 percent weight and 26.4 percent growth per year) and funds on correspondent accounts (1.41 billion AZN with 6 percent weight).

Loans and deposits delivered by the banks to the financial sector amounted to 0.97 billion AZN as of September 2014 (4.1 percent).

The lion share in the structure of liabilities accounts for deposits standing at 10.08 billion AZN (42.89 percent) as of October 1, 2014, showing an increase of 17.62 percent compared to the same period of 2013. Loans and deposits from the financial sector amounted to 8.05 billion AZN, increasing by 23.66 percent.

According to the CBA, as of Oct. 1, the total capital of non-bank credit organizations operating in the country was only 83.44 million AZN with assets worth 614.6 million AZN compared to 79.68 million AZN and 579.31 million AZN in the previous quarter.

The non-bank credit organizations reached its peak on April 1, when it hit 84.44 million AZN and their assets reached only 551.13 million AZN.

As of October 1, the non-bank credit organizations' capital covered 13.6 percent of their assets, which is by 13.7 percent less as of July 1. The lowest level of capital in the microfinance sector was stressed in 2014. The capital covered the non-bank credit organizations' assets by 15.3 percent during "capital peak" (April 1).

Payment card market

The number of payment cards in Azerbaijan has increased by 5.6 percent since early 2014 and hit 5.991 million units as of September 2014, according to the Central Bank of Azerbaijan's report as of Jan.-Sept. 2014 says.

Their number increased by 12 percent compared to the same period of 2013.

Some 4.738 million units of the total number of cards were debit cards, in particular, 2.558 million - social cards, 1.413 million - salary cards, 767,000 - other cards. The number of credit cards was 1.254 million units.

The total turnover on payment cards via ATMs and POS-terminals amounted to 8.658 billion AZN and the total number of transactions to 57.845 million units in January-September, according to the report.

The number of transactions on debit cards equaled 45.388 million units totaling 6.951 billion AZN.

Of the total number of transactions, around 36.467 million transactions amounting to 6.266 billion AZN were implemented on debit cards via ATMs within the country, and around 2.620 million transactions amounting to 438 million AZN via POS-terminals.

Some 12.457 million transactions worth of 1.706 billion AZN were made on credit cards in January-September 2014.

As many as 3.883 million transactions worth 896 million AZN, of the total number of transactions on credit cards, were implemented via ATMs and there were 5.4 million transactions worth of 372 million AZN via POS-terminals.

As of October 1, 2014, around 2,543 ATMs operated in the country of which 1,440 are located in Baku and 1,103 in other cities and regions of the country. Their total number increased by 147 units or 6.1 percent during a year (compared to early October 2013).

The number of POS-terminals amounted to 58,609 units of which 40,165 are installed in Baku and 18,444 units in other cities and regions as of October 1, 2014.

The number of POS-terminals increased by 23,457 units or 66.73 percent compared to January-September 2013.

Stock market

The turnover of the Baku Stock Exchange increases by almost 1.4 times every year. Earlier, it increased by 1.57 times.

The BSE turnover of 1.454 billion AZN in the third quarter of 2014 compared to 2.023 billion for the second quarter and 3.888 billion AZN for the first quarter, according to BSE.

The best turnover was observed in February 2014 (1.759 billion AZN). The exchange reached a record level in the history of turnover in December 2011 (1.874 billion AZN) and the best level in July 2012 - 1.288 billion AZN.

The BSE turnover equal to 7.366 billion AZN on 4,673 deals in January-September 2014 has already made up 86.9 percent of its turnover for 2013 (8.475 billion AZN). The turnover was by 1.399 times more than in January-September 2013 (5.265 billion AZN on 3,792 transactions).

While preserving the current trends, the turnover of the Baku Stock Exchange for 2014 may amount to 9.821 billion AZN. The best turnover was registered in 2008 - 9.519 billion AZN in the history of the stock exchange.

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Azerbaijan reveals inflation rate for 2021
Buta Airways to start operating flights to Kharkiv in May and increase number of flights to Kiev
Georgia’s Rural Development Agency talks co-op with international agencies in 2022 (Exclusive)
Eni to develop innovative technology for use of CO2
New opportunities for co-op appeared in region after end of conflict between Armenia, Azerbaijan – President Ilham Aliyev
Azerbaijan developing mechanisms for financing business in liberated lands
Uzbekistan sees increase in volume of car exports
Central Bank of Azerbaijan increases interest rate
Integration of arable land at Azerbaijani liberated territories into national crop rotation to improve food security - FAO (Exclusive)
Ukrainian Ministry of Economy discloses trade turnover data with Azerbaijan
Azerbaijan Entrepreneurship Dev't Fund talks soft loans for 2022
Bank of Georgia allocates funds for local solar power plant construction
Turkmen agriculture ministry opens tender to purchase plant protection chemicals
Uzbekistan to reduce methane emissions
Azerbaijan eyes turning local payment system into neo-bank
Uzbekneftegaz JSC, Tatneft PJSC discuss implementation of investment projects
Azerbaijan Entrepreneurship Development Fund unveils volume of soft loans issued in 2021
Georgia shares data on number of plastic cards in circulation
Azerbaijani oil prices down
Kazakh-Chinese oil company extends tender to buy spares for pumps
Azerbaijani doctor discloses most effective way to protect against omicron variant of COVID-19
TCS world's second most valuable IT brand, Infy fastest growing
Azerbaijani President Ilham Aliyev holds videoconference meeting with WCO Sec-Gen (PHOTO)
Uzbekistan establishes export of agricultural products to Latvia
Swiss train manufacturer eyes building factory in Georgia
Azerbaijan launches Tableau program for analyzing indicators of import, export operations
Azerbaijan preparing action plan within "Peace for Culture" initiative - ministry
Turkmenistan proposes to include Turkmenbashi Port in INSTC
Azerbaijan, Georgia to conduct joint tourist trips
Robinhood posts $423 mln net loss, shares sink after hours
MOEX index up 1.23% at trade start
Toyota remains world's biggest car seller, widens lead on VW
Azerbaijani currency rates for January 28
Germany’s RBC Consulting eyes expanding co-op with Azerbaijani companies
Oil heads for sixth weekly gain amid supply concerns
India's gold demand to keep rising after big jump in 2021: WGC
Number of cyberattacks on Azerbaijani companies tripled in 2021 - Span Azerbaijan
Kyrgyzstan reports about 11 servicemen injured as result of conflict on border with Tajikistan
Australia drugs regulator approves COVID-19 boosters for 16- and 17-year-olds
We will solve everything through negotiations, peacefully - Kyrgyz president about conflict on border with Tajikistan
Croatian companies preliminary talks on investment opportunities in Azerbaijani liberated territories - ambassador (Interview) (PHOTO)
Iranian National Soccer Team wins its way into World Cup
Situation on Kyrgyz-Tajik section of state border is stable
Three more citizens of Kyrgyzstan injured as result of conflict on border
Turkey's daily COVID-19 caseload hits new high of 82,180
3 police officers shot in U.S. Houston, suspect at large
Brazil's top court subpoenas Bolsonaro in leaked documents case
Morocco extends health emergency state until Feb. 28
Kyrgyzstan and Tajikistan agree on ceasefire and military withdrawal from border
N.Korea confirms latest weapons tests
Kyrgyzstan evacuates 1,470 residents from villages bordering Tajikistan
Jordan says 27 drug smugglers killed at border with Syria
Turkish 'kindness train' departs for Afghanistan with 748 tons of aid
Representatives of Kyrgyzstan and Tajikistan hold meeting on incident at border
EMA conditionally approves Pfizer's COVID-19 pill
Georgia – Uzbekistan trade turnover up
Tajikistan reports civilian casualties as result of incident on the border
Kyrgyz Border Service: Tajik side again violated bilateral ceasefire agreements
Tajik side does not cease fire and continues to pull up military equipment, personnel
Turkey calls for thaw in Ukraine - Russia tensions
Civil protection services of Kyrgyzstan transferred to emergency mode
Tajikistan pulls heavy equipment to the border - State Committee for National Security of Kyrgyzstan
Five Tajik citizens injured in conflict on border with Kyrgyzstan
Iran, Uzbekistan to develop transit ties
Turkish Airlines' Chairman of the Board of Directors resigns
Azerbaijan's Zangilan Airport to be included into ICAO catalog
Chairman of Azerbaijan's National Television and Radio Council talks details of switching to HD format (Exclusive)
Azerbaijan records increase in loans issued for real estate sector
Uzbekistan shares data on interest expenses of banking sector for 2021
Uzbekistan shares data on regulatory capital of its banks for 2021
Kazakh president suggests to set up transport and logistics consortium with India
Trade turnover between Central Asian countries and India unveiled
Launch of Azerbaijani-Armenian border delimitation to help prevent incidents - Russian MFA
Azerbaijan launches engineering-geological studies in Aghdam Industrial Park
Azerbaijan's Anglo Asian Mining increases its stake in Canadian mining company
Turkmenistan and US discuss bilateral cooperation
Azerbaijan announces auction to privatize state enterprises, vehicles
Azerbaijani gymnast to participate in Trampoline Gymnastics World Cup in Baku
Turkmen Khazar consortium announces tender for tubing repair
Azerbaijan records increase in export of products by industrial zones
Azerbaijan to hold auction for helicopters (PHOTO)
European natural gas prices to fall this year
Armenian PM may visit Turkey
Azerbaijan and Turkmenistan hold another meeting on "Dostlug" field
Global oil market to flip into surplus in 2022
Georgia’s electricity exports skyrocket
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