Banks and non-bank institutions, whether private or state-run, have reduced the level of their business lending.
According to the statistics of the Central Bank of Azerbaijan (CBA), by September 1 they invested in the local economy 16 billion 839.7 million AZN (net minus of 22.5% since the beginning of the year, without taking into account two-time drawdown of the manat as a result of last year's devaluation).
The share of overdue loans is 9.45% of the total loan portfolio, or 1 billion 592.9 million AZN (+ 5.6% YTD).
By September 1 state banks issued 5 billion 512.6 million AZN and private banks issued 10 billion 816 million AZN (both -22%), with a small proportion of non-bank credit organizations.
Issued in AZN was 8 billion 755.1 million manat (minus 20.4%), in a foreign currency – AZN 8 billion 84.5 million (minus 24.7%).
Traditional "champion" in lending was the household - 6 billion 272.7 million manats, with the share in the portfolio of 32.3% (minus 8% to the beginning of the year), that is, people that repay consumer credits do not take extra money, in contrast to previous years.
Next comes trade and services - 2 billion 504 million manats (14.9% of the total portfolio), construction and real estate - 2 billion 21.1 million manats (12%), industry and the manufacturing sector - 1 billion 321.4 million manats (7.8%), transport and communications - 1 billion 175.8 million manats (7%). Agriculture and processing was invested 400.7 million manats (2.4%), energy, chemistry and natural resources - 370.3 million manats (2.2%), etc. --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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