Doing Business in Azerbaijan 2009 - Azerbaijan Export ...

116 DOING BUSINESS IN AZERBAIJAN
the year-start, which is primarily associated with the banks’
growing inclination towards investment project financing. During
the year 51% of the loans were Manat-dominated facilities.
During the year, loans to the agricultural and processing sector
increased by 33.6%, to industry and production by 38.8%, and to
trade and services by 60.1%. Loans to the trade and services sector
amounted to AZN1910.4 mln as of January 1, 2009, which
represents 27.3% of the total loans.
Securities acquired by banks increased by 1.8 times as of January
1, 2009 thus totaling to AZN747.6 mln. Government securities
decreased to 39.2% as percentage of the total securities as of the
total securities as of January 1, 2009 (70.2% as of January 1,
2008). Banks’ investments in corporate securities increased by 3.6
times totaling to AZN453.6 mln by the end of 2008, where as debt
obligations of foreign companies amounted to AZN434.1mln.
Insurance
Insurance market is one of the most dynamic sectors of the
Azerbaijani financial market. Although insurance market is on the
first stage of its development, according to analysis of financial
indicators it could be said that growth and development direction
of the market by and large is on a right path.
There are two public organizations in the field: The Union of Azerbaijani
Insurers and Union of Insurance Societies of Azerbaijan.
Activities are directly contributing to the insurance market development
and reinforcement of the companies. Seven insurance majors
are also the members of the Insurance Council established by the
Ministry of Finance of Azerbaijan. A number of internationals are
also involved in local insurance market either directly or through
local companies.