Azernews.Az

The Azerbaijani banks increased lending to the country's economy by 5.4 percent in January-May 2013 and by 26.33 percent per annum, the Central Bank of Azerbaijan reported.

According to the CBA report as of January-May 2013, banks provided loans totaling over 13.406.3 billion manats, including over 9.444.3 billion manats in national currency.

The figure was over 10.611.5 billion manats (including over 6.994.3 billion manats in national currency) in the same period of 2012.

Of the total portfolio 768.7 million manats (5.73 percent) accounted for overdue loans compared to 720.1 million manats as of January-May 2012.

The statistics on overdue loans does not include loans of non-bank credit organization Aqrarkredit. Within a year, the volume of overdue loans increased by 6.7 percent.

As of Janury-May 2013, the volume of short-term loans amounted to over 3.197.7 billion manats compared to almost 377.1 billion manats in the same period of 2012. Within a year, the volume of short-term loans increased by 8.1 percent. As of early June 2013, around 30.66 per cent of short-term loans were in freely convertible currency (980.5 billion manat).

The volume of long-term loans amounted to over 10.208.6 billion manats as of June 1 compared to 7.652.7 billion manat (343.1 million manat overdue loans) as of January-May 2012.

The long-term loans increased by 33.4 percent per year. As of early June 2013, 29.2 percent of long-term loans accounted for freely convertible currency (2.981.5 billion manat).

According to the CBA, the only state bank in the country (the International Bank of Azerbaijan) delivered the loans totaling 4.570.5 billion manat with a specific weight of 34.1 percent, while private banks - 8.482.1 billion manat with a specific weight of 63.3 percent. The remaining 2.6 percent fall to the share of non-bank credit organizations. They issued 353.7 million manat.

Most of all loans are granted to households in Azerbaijan. According to the CBA, as of January-May 2013, households received 38 percent or loans worth 5.088.7 billion manat
The sphere of trade and services (15.9 percent or 2.132.5 billion manat) ranks second, the real estate and construction sector (15.4 percent or 2.066.9 billion manat) ranks third.

It should be stressed that industrial and production sector received 9.6 percent of the total lending amount of the Azerbaijani real sector, which hits 1.284.4 billion manat in nominal terms.

Some 3.3 percent (448.3 million manat) fall to the transport and communication, 4.5 percent (609.9 million manat) - agriculture and processing, 2.2 percent (290.1 million manat) - energy, chemistry, and natural resources, 11.1 percent or 1.485.5 billion manat loans - on the other spheres

Around 43 banks operate in Azerbaijan.