BANK OF BAKU AUDITORS REPORT AND
FINANCIAL STATEMENTS AT
31 DECEMBER 1998
Note 6 - Loans and Advances to Customers
1998
1997
Current loans
2,415,242
1,429,428
Rescheduled loans
335,970
-
Overdue loans
43,400
-
Total loans and advances to customers
2,794,612
1,429428
Less: provision for bad and doubtful loans
(115,953)
(63,222)
Total loans and advances to customers net
2,678,659
1,366,206
Movement in the provision for bad and doubtful loans is as follows:
1998
1997
Provision for bad and doubtful loans at 1 January
63,222
-
Charge against profit for bad and doubtful loans in the year
52,731
63,222
Provision for bad and doubtful loans at 31 December
115,953
63,222
Economic sector risk concentration of the customer loan portfolio is as
follows:
1998
%
1997
%
Trade
1,233,090
44.1
1,326,487
92.8
Consumer credits
1,561,522
55.9
102,941
7.2
Total loans and advances to customers
2,794,612
100.0
1,429,428
100.0
Consumer credits represent USD loans granted
to individuals for purchase of cars from NAB Foreign Trade Ltd, a Turkish
company. These loans were collateralised by the cars purchased by the customers.
The interest rates on current AZM denominated loans during
1998 ranged from 18% to 35% (1997: 10% to 24%). Interest rates on USD loans
issued during the year ranged from 24% to 30% (1997: 11% to 24%).
Geographical and currency analyses of loans and advances to
customers are disclosed in Note 18. The maturity structure of the loan portfolio
is detailed in Note 20.
