Since early 2019 credit investments grew more than by 16%


December 13, Fineko/abc.az. The Central Bank has published information on the discount rate.

ABC.AZ was informed at the country's main bank that monetary conditions were subjected to further softening at the last meeting of the CBA Board. According to the CBA, this serves to change of the aggregate demand in line with the potential of the economy. The increase in the growth rate of the monetary base in manats up to 14% is linked mainly with budget expenditures with the use of the single treasury account. Despite the effect of softened monetary conditions on the deposit interest rate cuts, the 26.9% increase of retail deposits in manats for 11 months of 2019 indicates the attractiveness of fees in the national currency.

Dollarization of deposits of individuals decreased from 62.5% at the beginning of the year to 54.1% in November, including for resident individuals from 54.6% to 49.5%, respectively. There is also a positive impact of softened monetary policy on credit activity. Since the beginning of the year the credit investments (including banks and non-bank credit institutions) increased by 16.1%.

In particular, loans to households grew by 21% and loans to legal entities by 11.6%.