Residual volume of lending to the economy of the country increased in January 2014 by 0.7% to 15,536.3 million manat.
According to the Central Bank of Azerbaijan, NPLs stood at 815.1 million manats, while their share in total loans compared to December 2013 rose to 5.2%.
In the real economy by banks issued 98% of all loans in the financial sector - 2% (previous year - 1.2%). In the sector structure of lending especially trend decline in the share of trade and services sector. So last year the share of this sector fell by 6.2 percentage points to 14.2%. The total volume of loans fell during the same period by 15.1% to 2,211.4 million manat.
In a different way things are with lending of households or, more simply, the consumer lending. For the year this type of loans increased by 43%, reaching 6,358.9 million or 40.9% of total loans. For comparison, compared to last year same period, the share of consumer loans increased 5.2%.
Commenting on the issue for Turan, expert assistance Economic Initiatives Center Samir Aliyev, said that in the coming months we can expect a significant reduction in the rate of growth of consumer loans. This is mainly due to the tightening of the Azerbaijani Central Bank lending requirements, the logical result of which could be redirected by the banks for lending to businesses. Today, business lending is generally carried out by large banks like IBA and Capital Bank, because this direction requires large financial resources, and the risks are much higher than in consumer lending.
As a result, according to the expert, in the current year growth of consumer lending may reach 15-20% while its share in total lending is below 40 percent. -15B -
Economics
-
In a strategic move to bolster mechanisms against financial crimes and terrorism financing, Azerbaijan's Deputy Prime Minister, Samir Sharifov, has been appointed as the head of the newly restructured Coordinating Council on Counter-Terrorism Financing and Other Financial Crimes.
-
The Chairman of Azerbaijan Railways CJSC, Rovshan Rustamov, and the head of Iranian Railways, Jabbar Ali Zakeri Sardrudi, convened in Tehran during the Joint Azerbaijani–Iranian Intergovernmental Commission meeting to bolster cooperation on the Astara terminals, key nodes in the International North-South Transport Corridor (INSTC). The talks centered on enhancing the operational efficiency and strategic significance of these terminals to facilitate growing cargo volumes between the two nations.
-
Azerbaijan is accelerating its transition to green energy through the coordinated efforts of its "Green Energy Zone" task force, which recently held its latest hybrid meeting to review progress and outline future priorities. The Ministry of Energy, reporting on Wednesday’s session, emphasized the task force's central role in implementing the 2022–2026 Socio-Economic Development Strategy, a cornerstone of Azerbaijan’s ambitions for sustainable growth.
-
AzerGold, Azerbaijan’s state-owned mining company, is pursuing opportunities for strategic collaboration with Turkish firms in Africa as part of its efforts to expand its presence in the global mining sector. Recent talks between Zakir Ibrahimov, Chairman of the Board of AzerGold CJSC, and Şebnem Cenk, Head of the West and Central Africa Department at Turkey's Ministry of Foreign Affairs, highlighted the potential for a mutually beneficial partnership.
Leave a review