Overdue loans nearly double in Azerbaijan

Overdue loans nearly double in Azerbaijan
# 01 February 2010 14:08 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. As of January 1, overdue loans amounted to AZN 303.5 million in Azerbaijan, up nearly 2 times from a year ago, said the Central Bank of Azerbaijan.

The share of overdue loans reached 3.6% of total loan book, compared to 2.2% a year ago.

However, the portion of overdue loan has significantly declined over the recent years given that the share was 27.6% in 2001, 11% in 2004, 3.3% in 2006 and 2.1% in 2008.

Over the last 9 years the overdue loans share has been gradually decreasing.




According to the world practice, the level of up to 5% is still considered as a permissible level.

In the face of the global financial crisis, the share of overdue loans reached 15-20% in some countries.
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