Since the February devaluation of the manat there is a topical issue of expediency of introduction of innovative banking products that could lead to a number of problems, such as excessive lending, entailing an increase in the credit burden on the population.
The Chairman of the Association of Microfinance Organizations of Azerbaijan (AMFA) Suleiman Kaliashev said at the IV Fair of Investors' Road to Responsible Microfinance this type of lending is the basis for small businesses, contributing to its development and at the same time providing support to low-income groups. At the same time, representatives of the local financial sector are forced to take measures to discharge the credit burden of the population.
So, if in the first half of the year the loan portfolio of microfinance institutions was approximately 1 billion AZN, today it has narrowed to 620 million AZN.
The investors' fair has been organized by AMFA to discuss the results of market research, introduction of innovative products, overheating of the loan portfolio, etc. The event is attended by representatives of the government, microfinance institutions, donors, rating agencies, banks, insurance and leasing companies, as well as experts. --17D-
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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