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Loan lending declines in provinces of Azerbaijan

12 November 2008 11:00 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. The share of loan lending in provinces of Azerbaijan has declined.
The National bank of Azerbaijan said 86.6% of loans were lent in the countryâ€™s capital Baku as of October 1.
The share of lending in Baku increased 2.2 percentage points in Baku. As a result, the share of lending in regions fell to 13.4% from 16%.
The shares of major cities outside the capital were as below: Sumgait 2.5% (fell 0.1 percentage points), Ganja 1.9% (0.6%), Lenkeran 0.7% (0.1%), Nakhchivan 0.3% (steady), Absheron 0.2% (0.4%) and other regions and cities 7.8% (1.4%).
Banks prefer to lend loans in the capital city rather than in regions because the business and householdsâ€™ profitability are low and collateral is considered to be non-liquid in regions.
Loans lent to the agriculture account for 4% of the bank loans.