Loans in Azerbaijan exceeds deposits by a double

As of February 1, 2011, the annual interest rate of credits in manat made 14.4% on legal persons, 19.85% on individuals, CBA reported.

At the same time, average interest rate of legal persons’ deposits in manat made 6.27% and 11.83% on individuals.

So, credits given to legal persons are 2.3 times more expensive compared to deposits and 1.7 times more expensive than credits given to individuals. Average interest rate on average performance exceeds the interest rate of deposits by 1.5 times.

The difference between the interest rate on credits and interest rate on deposits forms the interest profit. This performance decreases, in Azerbaijan, gradually. Because of the activity of banks in lending sphere decreases.


/APA/