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Central Bank: Measures will be continued for reduction of interest rates in 2015

02 February 2015 07:49 (UTC +04:00)

Baku. Musa Ahmadov - APA-Economics. Stability and sustainability of Azerbaijan banking sector was ensured, the sector supported economic growth and diversification in 2014, said the Chairman of Central Bank of Azerbaijan Elman Rustamov.

According to him, the bank capitalization has been continued: “After the decision on capitalization, banks’ total capital doubled. For the present, capital adequacy makes 19% against 8%-international norm”.

He says the bank assets rose 21% in 2014.

“Bank loans increased 18%, including long-term loans – 19%. Business lending continued to extend and share in loan portfolio stood at 73%. Business loans rose 18%, including industrial lending 36%. Provision of crediting in the regions grew 39%. Increase of consumption loans has been regulated the Central Bank in order to prevent financial risks. Consequently, consumption loan growth rate fell 1.9 times to 19%. Car loan dropped 31%. Interest rate reduction process continued. Average interest rates on loans slipped from 18%to 14%, including on business loans – to 10%”, he said.

Rustamov also drew attention to the main tasks laying ahead and noted that maintenance of financial stability in 2015 is one of these tasks. Therefore, immunization measures will be continued, risks will be regulated. Giving of long-term loans to business will be promoted. Financial accounting of the real sector, effective protection of creditors’ rights will play role in increase of business loans. Measures will be continued for reduction of interest rates in 2015.