Over past year manat dividends have decreased by 35%


October 2, Fineko/abc.az. Despite the fact that the leading banks offer consumer loans with interest rate of 29% and in US dollars with rate of 20%, they pay dividends on deposits in US dollars less than 1%. 

Center for Economic & Social Development’s head Vugar Bayramov says that the analysis of deposit offers on the Internet pages of the most leading banks of Azerbaijan shows that some banks pay 0.1% for one-year deposit in dollars, 0.3% for 2-year deposit, and 0.5% for 3-year deposit.

"This means that a citizen, who places 10,000 dollars in a bank, receives dividends of only 10 dollars at the end of the year.  And the amount of monthly income from dividends does not exceed even 1 dollar.
Payments on a deposit in US dollars at leading banks are about 1%, and only at retail banks 2.5%. This means that with a 1% deposit of 10,000 dollars the bank promises income of $100 a year, i.e. a little more than 8 dollars a month. The system reduces the interest to deposits of depositors who want to save money in foreign currency, sharply reducing the profitability of the deposit at leading banks that is reflected in the deposit portfolio. Over the past year dividend interests on the manat has also decreased by an average of 35%. On the other hand, in order to activate passive money, there is a need to intensify work to increase confidence to banks," Bayramov believes.