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-
Economics
-
Last week, Azerbaijani media reported an impending increase in retail bread prices, attributing the rise to an increase in product weight. The following day, an official notification confirmed that the government had no intentions of sanctioning a bread price hike in the country. However, the threat of a price increase for this staple food remains for another reason.
-
S&P Global Ratings has revised its risk assessment of Azerbaijan’s banking sector, upgrading the outlook from "stable" to "positive."
-
In recent days, there have been claims that bread prices in Azerbaijan have risen. Social media users report that the price of bread has increased by 5-10 qepiks. According to consumer complaints, it is difficult to find weight information on factory-produced bread, commonly known as "zavod çörəyi" in Azerbaijan. In many cases, bread packaging does not include weight details. Similarly, bread sold at smaller bakeries and tandir houses often lacks information apart from the price.
-
A trilateral meeting of the foreign ministers, transport ministers, energy ministers, and heads of customs services of Russia, Iran, and Azerbaijan is set to take place soon to discuss the progress of the Rasht-Astara railway project, a key element of the International North-South Transport Corridor (INSTC). This was announced by Iran’s Ambassador to Russia, Kazem Jalali.
Leave a review