Azerbaijan, Baku, Dec. 17 / corr. Trend N. Ismaylova/ Azerbaijani Capital Bank will restore lending from Dec. 17 but with toughened demands, Rauf Rzayev, chairman of the board, said on Dec. 16.
"Lending was suspended since Dec. 1 to toughen credit policy and because of lack of cash money, Rzayev said.
Under new terms of lending, interest rates are increased in average by 1-1.5% per year for all types of loans.
"These actions are the most acceptable ones which enable to minimize risk and damage of bank in the present terms," head of Capital Bank.
Married people will have benefits in getting customer credits because they are more responsible, Rzayev said.
"Presently, the bank is also tough oriented on wages without additional profit of clients," he said.
From now on the bank will grant credits for cars at the rate of 23-26% per year but initial installment depends on price of car and its condition. Earlier the rate for car crediting varied from 22-25%. While allocating loan in the amount of AZN 30,000 for purchase of a car, the Credit Committee will first estimate a car and compare its price with maximally possible one.
The bank grants business credit at the rate 19-23%, though earlier the rate varied from 18-22%.
According to data on Dec. 16, credit portfolio made up AZN 213mln, or 45% of assets.
Capital bank was set up in 2000. In the end of the first quarter of 2008 the bank was included in Azerbaijani five biggest banks and had assets in the amount of AZN 290mln though market share of bank made up only 4%. Its assets have been increased to AZN 513mln.
New shareholders of Capital Bank after its privatization include Аta Holding (35%), Xalq Bank (20%), Azersun Holding (15%), Pasha Holding (15%), Xalq Sigorta (7.5%), an individual (5%) and bank employees (2.5%). Presently, there is limited information about qualified beneficiary owners of these companies and their plans in bank activities.
Current exchange rate for Dec. 16 makes up AZN 0.8039 per USD 1.
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