10:47 - 1.07.2024

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July 1, Fineko/abc.az. While the volume of term deposits in Azerbaijan has updated its historical maximum, the indicator of their value for banks has also increased. In the whole country, there is an increase in interest rates.

ABC.AZ reports that in May 2024, the average interest rate on newly attracted deposits grew from 7.64% to 7.95%, while in foreign currency the rate decreased from 2.77% to 2.46%.

According to the Central Bank's statistical bulletin published last week, the total deposit increased by 2.3% up to 35.36 bn manats, including 7.414 bn manats of individuals’ term deposits and 4.888 bn manats of legal entities’ term deposits. In the first 5 months of 2024, the banking sector made interest payments on deposits in the amount of 260.9 million manats. Of them, 224.1 million manats are term deposits. These included deposits paid to the financial sector in the amount of 62.2 million manats. Term deposit payments were above 14%.

At that, when distributing term deposits and deposits, average interest rates move in different directions. For example, while term deposits of companies and organizations grew from 6.03% to 6.16%, the average interest rate of household deposits declined from 9.34% to 9.28%.

Thus, the Central Bank lowered the discount interest rate from 9.0% in the last quarter of 2023 to 7.25% in May. While the average deposit rates in the country increased from 8.21% to 8.37%, the average loan rates fell slightly from 14.38% to 14.37%. Loans given to the population remain stable at the level of 16.06%.