In First Quarter, Interest Rates on Loans in Foreign Currency Increased Four Times

In the first quarter of 2015 the real rate of loans in foreign currency banks in Azerbaijan increased by 4 times and amounted to 46.6%. The reason for this jump was the February devaluation of the manat to 33.7%, according to the Central Bank.

The average interest rate on foreign currency loans decreased from 14.07% in 2014 to 12.09% in the first quarter.

The average rate on credits in national currency increased from 13.81% in 2014 to 14.02% in the first quarter of this year. The real interest rate of national currency fell from 12.41% in 2014 to 11.22% in the first quarter of 2015.

The rate of lending to legal entities in national currency decreased from 9.99% in 2014 to 9.75% in the first quarter. The real rate decreased from 8.59% in 2014 to the current 6.95%. The interest rate on foreign currency loans decreased from 9.18% in 2014 to 8.84% in the first quarter. The real rate of loans in foreign currency also grew four times - up to 42.54%.

The average rate of lending to individuals in manat decreased from 18.53% in 2014 to 18.39% in the first quarter. The real rate decreased from 17.13% in 2014 to 15.39% in the first quarter. The rate of foreign currency loans to individuals decreased from 21.52% in 2014 to 21.42%. The real rate of foreign currency loans also increased by 4 times - up to 55.12%. -0-