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Macrocredit portfolio exceeds AZN 1 bln in Azerbaijan

06 May 2014 15:05 (UTC +04:00)

Baku. Musa Ahmadov – APA-Economics. As of March 1, 2014, the macrocredit portfolio reached AZN 1.120 bln, said the Executive Director of Azerbaijan Microfinance Association Jala Hajiyeva.

According to her, number of active borrowers of microfinance organizations made 530,000.

Hajiyeva noted that upper limit of microcredits is AZN 16,000, while it was AZN 10,000 up to 2008.

Average sum of credits given by non-banking organizations to the population makes $ 1,289, by banks - $4,230. Now, the troubled loans of the non-banking organizations are below 1%. The microfinance organizations target small business, banks – medium and large business. Average every credit spends $239.

Hajiyeva said that 4.7% of population use microfinance services, including microcredits, leasing, insurance and other services.

She added that the microfinance organizations were more active in the regions and villages 17 years ago: “However, today, we also witness activity of banks, credit unions, even leasing companies in the regions”.

After the Central Bank of Azerbaijan’s decision on crediting rules, the interest rates reduced. Effective Annual Rate of Interest dropped to 20% from 27%.