Finance

Finance

Azerbaijan Industry Bank to further cut term deposit rates

11 January 2010 15:10 (UTC +04:00)

Baku. Elnur Huseynguluev - APA-ECONOMICS. Azerbaijan Industry Insurance (ASB) may further cut interest rates on household term deposits this year, said Hasan Badalov, deputy chairman of the bank.

According to him, the bank reduced interest rates on individual term deposits in home currency to 12.5% per annum in December 2009.

"The average annual interest rate on term deposits is 12.5% in manat and 10.25% in dollar. We intend to consider the issue of reducing interest rates again this year. This will depend on the interest rates of other banks,â€ he added.

In his words, reducing the base interest rate on individual term deposits is due to the availability of sufficient liquidity in the banking sector and the difficulties with lending.

"External financial resources are much cheaper now. Interest on funds attracted from foreign financial institutions is quite low,â€ he added.