Problem loans in Azerbaijan decrease

Finance Materials 31 May 2021 15:15
Baku, Azerbaijan Trend News Agency Zeyni Jafarov
Problem loans in Azerbaijan decrease

The problem loans in Azerbaijan decreased as of early May 2021, Trend reports referring to the statistical bulletin of the Central Bank of Azerbaijan (CBA).

According to the bulletin, in the reporting period, the loans made up 921.5 million manat ($542 million), reducing by 310.9 million manat ($182.8 million) or 25.2 percent on annual basis.

Meanwhile, the total loan portfolio of the banking sector and non-bank credit organizations (NBCO) decreased by 1.1 percent over the year, amounting to nearly 15 billion manat ($8.8 billion).

The share of state-owned banks in issued loans amounted to 2.85 billion manat ($1.68 billion) or 19 percent of the total portfolio, private banks - 11.76 billion manat ($6.92 billion) or 78.5 percent, NBCOs – 375.7 million manat ($221 million) or 2.5 percent.

The volume of loans issued in national currency by early May 2021 exceeded 10.8 billion manat ($6.3 billion, an increase of 6.5 percent compared to early May 2020), and their share in the loan portfolio of banks was 72.3 percent.

As reported, loans worth over 4.15 billion manat ($2.44 billion, decline of 16.4 percent year on year) were issued in foreign currency during the reporting period, with a specific weight of 27.7 percent of the banks' loan portfolio.

The volume of short-term loans in Azerbaijan amounted to over 1.9 billion manat ($1.12 billion) in national and 692.9 million manat ($407.6 million) in foreign currency, while the volume of long-term loans in national and foreign currency amounted to 8.91 billion manat ($5.24) and 3.46 billion manat ($2.04 billion), respectively.

(1 USD = 1.7 AZN on May 31)