BAKU, Azerbaijan, Aug. 19
By Sadraddin Aghjayev – Trend:
Lending through letters of credit in Azerbaijan decreased 3 times or by 15.8 million manat ($9.3 million) in the first half of 2021, on annual basis, amounting to 7.9 million manat ($4.64 million), the Central Bank of Azerbaijan (CBA) told Trend.
During the specified period, factoring operations amounted to 40.4 million manat ($23.7 million), which is 49 percent more compared to a year earlier.
“Banks lending to clients' settlement accounts to pay for settlement documents in case of insufficient or absent funds on the borrower's account (credit overdraft) in the specified period amounted to 33.1 million manat ($19.4 million), which is 23 percent less compared to the same period of 2020,” the CBA said.
The share of these loans in lending to the real sector amounted to 0.2 percent, having decreased by 0.1 percent compared to the same period of 2020, the report reads.
At the same time, lending to the financial sector increased by 46 percent on annual basis and reached 469.4 million manat ($276.1 million).
The total volume of lending to the real sector of the Azerbaijani economy in the first half of the year exceeded 15.2 billion manat ($8.94 billion), which is 707.4 million manat ($416.1 million), or 4.9 percent more compared to the same period of 2020. The largest share of loans in Azerbaijan in the reporting period fell on households, amounting to 7.32 billion manat ($4.3 billion), or 48 percent of the total lending to the real sector.
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