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Credits 

(2009 year) 

In 2009, deceleration of the economic activity in the country and increased risks negatively affected the credit activity of commercial banks. This provided reduction of the real sector crediting as well as increase in the credits cost. Within the reporting year the credit portfolio of commercial banks decreased by 1.5 percent and constituted 25.2 billion soms (exclusively of influence of the KGS exchange rate dynamics, the credit portfolio decreased by 7.6 percent). At that, in conditions of instability of the USD exchange rate dynamics in external and domestic markets, the risks, related to foreign currency exchange rates changes, increased (currency risk). In these conditions, commercial banks reduced the currency part of their credit portfolio (where the share of credits in USD constituted 93.4 percent). As a result, the credits in foreign currency decreased by 5.5 percent (decrease constituted 14.9 percent, with exception of the factor, related to foreign currency rate changes) and constituted 15.7 billion soms. At that, the credits in the national currency increased by 5.8 percent and constituted 9.5 billion soms as of the end of December.  

 

The weighted average interest rate on credits in the national currency, constituting the credit portfolio, amounted to 25.3 percent as of the end of the year, having increased by 1.4 percentage points from the beginning of the year, whereas the weighted average interest rate on credits in foreign currency constituted 20.6 percent, having increased by 1.1 percentage points. 

 

 

 

In 2009, the main spheres of crediting included trade sphere and agricultural sector. The volume of credits to trade sector, constituting major part of the operating commercial banks credit portfolio, increased by 13.2 percent, which provided increase in their share from 36.1 to 41.5 percent. The volume of credits to agricultural sector, increased by 5.1 percent and their share increased from 11.5 to 12.2 percent. The share of credits to other economy branches decreased: credits on mortgage from 14.0 to 12.2 percent; credits on building and construction from 9.5 to 7.7 percent; consumer credits from 8.3 to 8.0 percent. Credits in the sphere of transportation, communication, procurement and processing as well as social services as usual constituted inconsiderable share 1.6 percent in total. The share of “other” credits decreased by 11.2 percent within the reporting period.  

 

Moreover, there was the decrease in crediting by all maturity types, as well as the increase in share of overdue debts. The share of long-term credits (over 1 year) in the credit portfolio structure decreased from 69.4 to 69.1 percent, whereas the share of short term credits decreased from 29.1 to 27.8 percent. As a result of considerable decrease in short-term credits, the credit portfolio duration increased inconsiderably from 24.8 to 24.9 months as of the end of the year. The share of overdue debts in the aggregate credit portfolio increased by 1.6 percentage points within the reporting year and constituted 3.1 percent, whereas the share of extended credits increased from 4.6 to 7.0 percent as of the end of December.  

 

In the reporting period, concentration of the credit market decreased. Thus, concentration index of the credit portfolio of operating commercial banks decreased from 0.10 to 0.09, which testified a low concentration and was equivalent to division of the market between 11 banks. At that, sectorial concentration of the credit portfolio of individual banks remained rather high (0.52) and testified distribution of the credit indebtedness of the majority of banks by two industries. Concentration of credits in industries also remained high: concentration index in 9 out of 11 industries constituted 0.18.  

 

In 2009, there was some decrease in the volume of newly issued credits of commercial banks. The volume of such credits constituted 22.0 billion soms within the reporting period, which was 9.7 percent lower than the corresponding index of 2008 (in the year of 2008, decrease constituted 0.6 percent) (see the Diagram No.1). Decrease in the issued credits volume was provided by reduction of credits, issued in foreign currency by 21.4 percent up to 12.0 billion soms, whereas the volume of crediting in the national currency on the contrary increased by 10.0 percent and constituted 10.0 billion soms.  

 

In 2009, the main share of issued credits was aimed at crediting of agricultural sector and trade. As a result, there was the increase in the share of credits, issued to agricultural sector, by 1.8 percentage points, which constituted 11.2 percent (increment rate of these credits constituted 9.0 percent in comparison with 2008). Despite decrease in the credits, issued to the industry, their share in the overall volume of issues credits, increased from 5.5 to 6.1 percent. At the same time there was reduction of the mortgage credits share from 5.3 to 2.6 percent, the consumer credits share from 10.6 to 9.6 percent. The share of credits for procurement and processing, transportation, communication and social services constituted inconsiderable share 1.5 percent in total. “Other” credits also decreased, and their share constituted 10.2 percent. 

 

 

In time structure of newly issued credits, reduction of the credits volume was noted for all maturity types. At that, the share of long-term credits increased from 60.0 to 60.8 percent as a result of increase in the share of credits, issued for the period from 1-3 years. This had an influence on the decease in duration of newly issued credits from 21.0 to 20.6 months.  

 

On an average, within the reporting period, the interest rate on credits issued in the national currency amounted to 26.7 percent, having increased by 0.7 percentage points in comparison with 2008. Herewith, the growth of interest rates was registered in almost all real sector branches, except for the credits, issued for “other” purposes. The highest interest rates were on credits, issued to the transportation sphere (30.8 percent). 

In terms of maturity, there was the increase in average rates on almost all credits in the national currency, except for the credits, issued for the period from 3-6 months and from 6 months 1 year (see the Diagram No.5). 

 

The lowest credit rates in the national currency were on mortgage credits (at average 20.4 percent) and the highest credit rates were on transportation credits (at average 30.6 percent).  

 

In the reporting period, the average rate on credits in the national currency constituted 26.2 percent, having decreased by 0.7 percentage points in comparison with 2008. At that, interest rates decreased in 10 banks due to changes of the industry structure and growth of the issued credits maturity, whereas in other banks interest rates increased.  

On average, value of the real interest rate on credits in the national currency constituted 16.6 percent within the reporting period (in 2008 (-1.0 percent), which was provided by decrease in the inflation rate on an annualized basis. The weighted average rate on credits in foreign currency constituted 21.5 percent, having increased by 1.1 percentage points. Rates increase was registered in all economy branches; the most expensive credits in foreign currency were the credits, issued for consumer aims (on average 28.0 percent). 

 

The lowest interest rates were on credits in foreign currency, issued to building and construction sphere (at 18.0 percent); whereas the highest interest rates were on credits in foreign currency, issued to consumer services (at 28.0 percent).  

 

The weighted average rate on credits in foreign currency constituted 23.0 percent, having increased by 0.4 percentage points, whereas in 8 banks the rates decreased. 

 

In terms of maturity, the average rates increased on all types of credits except for the credits, issued for the period from 3-6 months (see the Diagram No.7).