Baku, Azerbaijan, April 1
By Emin Aliyev - Trend:
Azerbaijani rates on credit cards in national and freely convertible currencies are below those of Georgia, according to a study conducted by KPMG on a request from Georgia's National Bank.
The weighted average nominal credit card rates in the national and freely convertible currencies, for cash transactions in Azerbaijan, stand at 24.3 percent at an actual annual interest rate of 27.5 percent.
Georgia's nominal and actual annual interest rates on cash transactions with these cards are 36 percent and 53.8 percent respectively (for cards in national currency) and 20.3 percent and 30.4 percent respectively (for cards in freely convertible currency).
The table below shows the credit card rates in Georgia and Azerbaijan in national currency and the freely convertible currency (for cash transactions):
|
Country |
Nominal rate on cards in national currency, % |
Actual annual interest rates on cards in national currency, % |
Nominal rates on cards in freely convertible currency, % |
Actual annual interest rates on cards in freely convertible currency, % |
|
Azerbaijan |
24.3 |
27.5 |
24.3 |
27.5 |
|
Georgia |
36.0 |
53.8 |
20.3 |
30.4 |
"The interest rates on cash and trade transactions via credit cards vary widely in Georgia. This difference shows itself in the amounts of payments," according to the study.
At the same time the rates on the trade transactions via the credit cards in the national and freely convertible currencies are more profitable in Georgia.
The table below shows the rates on credit cards in Georgia and Azerbaijan in the national and freely convertible currencies (for trading operations):
|
Country |
Nominal rate on cards in national currency, % |
Actual annual interest rates on cards in national currency, % |
Nominal rates on cards in freely convertible currency, % |
Actual annual interest rates on cards in freely convertible currency, % |
|
Azerbaijan |
24.3 |
27.1 |
24.3 |
27.1 |
|
Georgia |
19.1 |
20.9 |
11.3 |
12.4 |
Translated by E.A.
Edited by C.N.
