Azerbaijani banks are acting more decisively to reduce interest rates on loans, Parliamentary Committee on Economic Policy Chairman Ziyad Samadzade stated.
"Azerbaijan has established a strong banking system and formed a strong management culture in this area, loans are growing, domestic investment is also increasing. According to international experience, banks need to take more decisive steps to reduce interest rates on loans in the future," Samadzade told reporters on Wednesday.
In his words, reducing interest rates promotes entrepreneurship.
"If access to credit will be expanded, the business will develop. In this area there are many opportunities and there is demand for it," Samadzade noted.
As of September 1 the average rate of bank lending to the economy of Azerbaijan in national currency amounted to 15.39 per cent compared to 16.27 percent on January 1, 2012 and 16.19 per cent - on September 1 2011.
The average rate on bank lending in hard currency was 15.52 per cent compared to 16.79 percent and 16.42 percent respectively.
By early September, the average rate on bank lending to legal entities amounted to 13.31 percent in national currency compared to 14.53 percent as of January 2012 and 14.30 per cent as of September 1 2011.
The average rate on bank loans to corporate clients was 12.46 per cent in hard currency compared to 14.30 per cent and 13.87 per cent respectively.
On September 1 the average rate of bank lending to individuals amounted to 18.56 per cent in national currency compared to 19.06 per cent as of January 2012 and 19.30 per cent on September 1 2011.
The average rate on bank loans to individual clients was 22.31 per cent in hard currency compared to 22.90 per cent and 23.01 per cent respectively.