Finance

Home page

Finance

Average lending rate in national currency reaches maximum level in Azerbaijan

11 November 2008 10:34 (UTC +04:00)

At the same time, the interest rate on local-currency loans for legal entities reached 16.1% per annum which is also the maximum level over the past year.
This rate rose 0.77% from last year and 0.97% from early this year.
The rate on local-currency loans available to individuals reached 21.21%, up 1.23% on a year ago and 0.92% on early this year. The maximum level recorded in early August 2008.
The average rate on loans in foreign currencies reached 14.70%, down 2.45% on a year ago and 1.56% on early this year.
The rate for foreign currency loans available to legal entities, representing 11.98% which is 2.66% lower than a year ago year and 1.74% lower than the beginning of this year. For individuals, this figure fell 0.28% and 0.2% to 21.50%.
Interest rates on loans are as below in â€œLoan Lending Outlook for September 2008â€ by National Bank of Azerbaijan.

	Average rate		Legal entities		Individuals
	Manat	Foreign currencies	Manat	Foreign currencies	Manat	Foreign currencies
01.10.2007	17.06	17.15	15.33	14.64	19.98	21.78
01.11.2007	17.15	16.97	15.82	14.47	19.68	21.97
01.12.2007	17.46	16.68	15.79	14.15	20.30	21.62
01.01.2008	16.97	16.26	15.13	13.72	20.29	21.70
01.02.2008	17.49	16.17	15.79	13.78	20.44	21.22
01.03.2008	17.62	16.65	15.72	14.24	20.79	21.31
01.04.2008	17.71	17.87	15.85	16.20	20.84	21.06
01.05.2008	17.89	16.61	16.01	14.37	20.96	20.89
01.06.2008	17.94	14.07	15.86	11.51	21.05	20.61
01.07.2008	17.76	14.11	15.55	11.52	20.94	21.05
01.08.2008	18.21	14.10	15.95	11.71	21.38	21.38
01.09.2008	18.22	14.67	16.00	11.92	21.25	21.40
01.10.2008	18.25	14.70	16.10	11.98	21.21	21.50

As seen in the table, in September rates on foreign-currency loans for individuals exceed the rates for local-currency loans. This is due to the subjective factors as there are no macro-economic reasons for such a change.
The total loan portfolio of Azerbaijan-based banks reached AZN 6 604.7 million as of October 1.
55.2% of loans were lent in manat.