Foreign currency reserves of CBA make great jump

By AzerNews

The amount of foreign currency reserves of the Central Bank of Azerbaijan (CBA) hit a record high of nearly $12.333 billion as of April 1, compared to around $11.695 billion as of early 2013.

The growth of the reserves last month was 1.03 percent ($384.5 million). It reached 5.46 percent ($638 million) as of early 2013.

The CBA reports that the foreign exchange reserves are expected to hit $15 billion as of 2013.

The CBA also said that dynamic development of the banking sector and payment systems was ensured in the first half of 2013.

In the first quarter of the year, the banks increased lending to the Azerbaijani economy by 1.8 percent. In comparison with the same period of 2012, the figure grew 26.2 percent.

According to the CBA report on the Q1 results, banks provided loans totaling over 12.953 billion manats, including over 8.693 billion manats in national currency.

The figure was over 10.263 billion manats (including over 6.644 billion manats in national currency) in the same period of 2012.

Of the total portfolio 760.8 million manats (5.87 percent) accounted for overdue loans compared to 663.9 million manats in the first quarter of 2012.

The statistics on overdue loans does not include loans of non-bank credit organization Aqrarkredit. Within a year, the volume of overdue loans increased by 14.6 percent.

In the first quarter of 2013, the volume of short-term loans amounted to over 3.499 billion manats compared to almost 2.971 billion manats in the first quarter of 2012. Within a year, the volume of short-term loans increased by 17.8 percent. As of early April 2013, 39.73 percent of short-term loans were allocated in hard currency.

The volume of long-term loans amounted to over 9.454 billion manats compared to more than 7.292 billion manats in the first quarter of 2012. Within a year, the volume of long-term loans increased by 29.65 percent. As of early April 2013, 30.36 percent of long-term loans were in hard currency.

According to the report, consumer lending growth keeps up the pace, outrunning the expansion of active operations of the Azerbaijani banks.

In Q1 2013 consumer lending grew by 9.4 percent up to 4.7 billion manats. Over the 12 months it increased by 34 percent (from 3.525 billion manats as of April 1, 2012).

Loans issued to the public in the regions of Azerbaijan amounted to over 1.583 billion manats, or 12.23 percent of the total loan portfolio of the banks, which shows an increase within a year.

The figure amounted to over 11.37 billion manats in the capital Baku, where the loans in national currency exceeded 7.504 billion manats. The average interest rate on loans in the country as of April 1, 2013 was 15 percent and in Baku it was 14.3 percent.

The volume of lending in the Absheron economic region amounted to 359.6 million manats at an average interest rate of 18.4 percent, while that in Aran - 536.38 million manats at a rate of 20.5 percent. In Shirvan, it was 54.12 million manats at a rate of 22.5 percent, in Ganja-Gazakh region - 210.5 million manats at a rate of 21.8 percent, in Guba-Khachmaz - 55.95 million manats at a rate of 20.6 percent, in Lankaran 166.6 million manats at a rate of 24 percent, in Sheki-Zagatala region 70.57 million manats at a rate of 23.7 percent, in Upper Karabakh 29.4 million manats at a rate of 18.2 percent, in Kalbajar-Lachin 12.6 million manats at a rate of 25.1 percent and in Nakhchivan 87.98 million manats at a rate of 12.5 percent.