Credit to Economy in July Slightly Decreased

Residual lending to the country's economy contracted in July 2012 8.4 million or 0.1% to 10,826.4 mln.

According to the Central Bank of Azerbaijan, increased lending in the past 12 months was 1,706.2 million or 18.7%. The share of overdue loans in the total value exceeded 6.6% against 6.4% a year earlier.

Short-term loans for the year decreased by 13.1 million or 0.4%, while the long-term - by 1,719.3 million or 28.2%. The residue equaled 7,825.1 million manat. The share of long-term debt amounted to 72.3% (against 66.9% a year earlier).

The share of private banks in total credit portfolio reached 62.6%, the share of the country's largest International Bank of Azerbaijan for the year decreased to 34.5%, the remaining 2.9% was contributed by non-bank credit organizations

In the real economy from the banks came 98.3% of all loans, and in the financial sector came 1.7%. As of August 1, 2012, individuals were granted loans amounting to 3,833.8 million or 35.4% of the total, in the sphere of trade and services - 2,816.2 million or 26%, in the field of energy and natural resources - 282.9 million or 2.6%, in construction and property - 1,029.6 million or 9.5%, in industry and production - 660.2 million or 6.1%, in transport and communications - 396.9 million or 3.7% in agriculture and processing - 505.6 million or 4.7%, etc.

The share of foreign currency loans was 33.6%. The corresponding date last year, the share of foreign currency lending to the economy amounted to 37.2%.

According to the regional structure of credit investments, 87.1 percent accounted for Baku. The capital also has 82.8 percent of overdue. The average lending rate for the country in July amounted to 15.7% (unchanged from the previous month).

According to the Central Bank of Azerbaijan, the average rate of manat credits in July fell by 0.04% to 15.61%, for loans in foreign currency - by 0.01% to 15.43%. In annual terms manat resources decreased by 0.79 percentage points, while currency - by 0.99 percentage points As of August 1, manat loans were given to individuals under 18.54% per annum, and currency loans - under 22.11%. For legal entities, the figures were 13.63% and 12.56%, respectively. - 15B -