External public debt flat in 2016
Azerbaijan’s public and publicly guaranteed external debt increased marginally in 2016 to US$ 6.9bn (+0.3% y/y), corresponding to 20.4% of GDP. In quarterly terms, external debt decreased 9.6% q/q in 4Q16 from a recent high recorded in 3Q16.
Non-performing loans up to 9.8% in January 2017
Total loans by commercial banks were up 1.6% m/m (-21.2% y/y) to AZN 16.7bn, as depreciation of the local currency drove FX loans up 6.6% m/m to AZN 8.3bn, while local currency loans were down 3.0% m/m to AZN 8.4bn. In US$ terms, FX denominated loans were down 1.5% m/m to US$ 4.3bn. Non-performing loans (NPL) were up 10.9% m/m to AZN 1.6bn, driven by a depreciation-fuelled 13.2% m/m increase in overdue FX loans and an 8.3% m/m increase in local currency overdue loans. Overall, the NPL ratio reached 9.8% in January 2017, with the local currency NPL ratio up to 8.8% and FX NPL ratio down to 10.8%.
Deposit dollarization up to 77.8% in January 2017
Commercial bank deposits were up 5.1% m/m to AZN 23.2bn in January, as depreciation of the local currency drove FX deposits up 8.5% m/m, while local currency deposits were down 5.4% m/m to AZN 5.2bn. In US$ terms, FX deposits were up 0.3% m/m to US$ 9.4bn. With FX deposits increasing and local currency deposits retreating, deposit dollarization reversed its recent downward trend and inched up to 77.8% in January 2017.
SOCAR’s tax payments increased for the third consecutive month in February 2017
In February 2017 SOCAR paid AZN 134.4mn (+36.9% y/y) to the state budget and AZN 12.7mn (+15.9% y/y) to the state social protection fund. In 2M17, its total tax payments reached AZN 262.7mn (+21.7% y/y).
