Foreign currency lending to the economy in June reduced in price by 0.87 percentage points

Residual lending to the country's economy expanded in June 2012 by 223.3 million manat or 2.1% to 10,834.8 million manat.

According to the Central Bank of Azerbaijan, the increase in lending over the past 12 months amounted to 1,878.9 million manat or 21%. The share of overdue loans in the total exceeded 6.5% by July 1 against 6.2% a year earlier.

Short-term loans increased for the year by 62.9 million manat or 2.1%, while long-term - by 1,816.2 million manat or 30.3%. The balance of the latter amounted to 7,805 million manat. The share of long-term loans amounted to 72% (against 66.9% a year earlier).

The share of private banks in total credit investments reached 63.3%, the share of the country's largest International Bank of Azerbaijan for the year declined to 34.1%, the remaining 2.6% accounted for non-banking credit organizations.

To the real economy the banks issued 98.4% of all the loans, and to the financial sector they issued 1.6%. As of July 1, 2012, individuals were granted loans amounting to 3,802.8 million manat or 35.1% of the total, in the sphere of trade and services - 2,891.3 million manat or 26.7%, in the sphere of energy and natural resources - 273.7 million manat or 2.5%, in construction and property - 1,008.2 million manat or 9.3%, in industry and production - 644.3 million manat or 5.9%, in the sphere of transport and communications - 413.2 million manat or 3.8%, in the sphere of agriculture and processing - 504.4 million manat or 4.7%, etc.

The share of loans in foreign currency amounted to 33.8%. At the corresponding date last year, the share of foreign currency lending to the economy amounted to 38.2%.

According to the regional structure of credit investments, 87.1 per cent accounted for Baku. The capital also accounted for 84.1 percent of the delinquency. The average lending rate in the country in June amounted to 15.7% (16.1 a month earlier).

According to the Central Bank of Azerbaijan, the average rate of manat credit in June fell by 0.34% to 15.65% and for loans in foreign currency - by 0.87% to 15.44%. In annual terms manat resources reduced in the price by 0.74 percentage points and currency resources - by 1.24 percentage points. As of July 1 this year, manat loans were issued to individuals under 18.49% per annum and foreign currency - under 21.94%. For legal entities, the figures were 13.74% and 12.62% respectively. - 15B-