CBA Report on Bank Financing of Economy

According to a quarterly report of financial and credit policy of the Central Bank of Azerbaijan, by April 1, the volume of overdue loans was at the level of 1 billion 326.5 million manat (+ 9,33%, or 113 200 000 to the beginning of the year), while its share in the total loan portfolio increased by 0.2 points - to 6.74%.

Overdue loans in the national currency make up 691.5 million manat (52.13%), and in foreign currency - 635 million manat, or 47.87%.

In general, the credit portfolio of banks and micro-finance organizations by April 1 amounted to 19 billion 687 million manat (minus 9.4%). Of these, more than a third (34.5% of the total portfolio, or 6 billion 796.8 million manat) is the share of banks with state assets while reducing the share of 6.8%, and the remaining funds in the amount of 12 billion 294.7 million manat were issued by private banks (minus 11.4%) or 62.5% of total loans. Non-bank financial agencies account for only 3% of all the loans.

The total loan portfolio in manat is 51% (0.4% more than by January 1), or 10 billion 29.7 million AZN.

Notably reduced the proportion of households in the portfolio - from 40.6% last year to 38.5% by April 1, or 7 billion 583.2 million manat, which is the cause of the refusal of banks from issuing consumer loans to borrowers with continued payment of interest. In the second place (15.5%) are loans for construction and purchase of real estate - 3 billion 54.8 million manat, followed by trade and services (14.2%) or 2 billion 800.5 million manat. The transport and communications were invested 1 billion 513.4 million manat (7.7%), and the industry and manufacturing sector - 1 billion 369.1 million manat (7%).

For various reasons, bank lending lags behind in such priority areas as energy, chemicals and natural resources - total 298.2 million manat (1.5%) due to the state and foreign private financing, as well as agriculture - 432 900 000 manat (2.2%) due to unprofitability and a variety of financial risks. --17D-