On 1 August the average interest rate in local banks in Azerbaijan amounted to AZN 13.97% (as of 1 January it was 13.81%). In the US the same figure was 12.73% (as of 1 January - 14.07%). That is, banks will continue to give preference to loans in foreign currency.
According to the information on the website of the Central Bank, the average rate on bank lending to legal entities in manat by 1 August is 9.87% (as of 1 January - 9.99%) and in US dollars they were given loans at a rate of 8.83% (9.18 %).
The average lending rate of individuals in manat in this period is equal to 18.29% (18.53%), while in the dollar and other foreign currency it is 21.46% (21.52%) with the real rate of 55.26%.
Recall, in July, the Central Bank lowered the discount interest rate to 3%, so that the banks lowered the maximum limit of the profits from the loan portfolio. However, as it can be seen, the banks are not interested in this measure, explaining that with the high costs of doing business. --17D-
Economics
-
Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
-
Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
-
Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
-
In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
Leave a review