According to the Central Bank's report, as of April 1, the amount of overdue loans in Azerbaijan reached 619.6 million manats.
At the beginning of 2026, problem loans were reported at 524.5 million manats.
There is an increase of 95.1 million manats in three months. Why?
Speaking to Medianews.az on the subject, economist Natig Jafarli stated that the main reason for the increase in problem loans is related to consumer loans: “Consumer loans are inflating. Citizens need more loans to cover their needs and apply for credit. In some cases, the mechanism for taking consumer loans has become easier compared to other types of credits. But some citizens cannot repay the loans they took. Therefore, the main reason for the increase in problem loans should be indicated as consumer loans.
So far, the increase is not so sharp and dangerous. Problematic loans are around 1.6-1.7 percent of the total loan portfolio. In global practice, it is considered that when more than 3 percent of the total loan portfolio turns into problem loans, a major problem arises in the banking sector. For us, the indicator is still below 3 percent. But the trend is bad. The trend is that every quarter we witness an increase in problem loans.”
Medianews.az reminds that in 2015, problem loans totaling 976.3 million manats were recorded in the country. The devaluations in that year increased the problem loans. The year 2016 started with 1 billion 508.5 million manats, 2017 with 1 billion 472.6 million manats, 2018 with 1 billion 626.7 million manats, 2019 with 1 billion 585 million manats.
In 2019, the state provided devaluation compensation for physical persons for loan agreements concluded since January 1, 2012.
For the year 2020, overdue loans amounted to 1 billion 273.1 million manats, for 2021 893.1 million manats, for 2022 719.4 million manats, for 2023 593.7 million manats, for 2024 437.8 million manats, and for 2025 449.1 million manats.
Naile Gasimova,
Medianews.az