Problem loans in Azerbaijan have reached record level: economist explains reasons

In the first ten months of the current year, the volume of non-performing loans in the country reached 805.5 million manats. At the same time, the results of the last two months of the year have not yet been taken into account, so this figure may increase. Compared to the same period last year, the indicator grew by 14.5%, which corresponds to an increase of approximately 102 million manats over the year.

As reported by BAKU.WS, this is stated in a Xəzər TV report.

Economist Khalid Kerimli notes that the growth of non-performing loans was influenced by the relative simplification of lending conditions by banks and increased interest rates in the first half of the year.

As for mortgage loans, the opposite trend is observed: the volume of non-performing loans decreased from 34 million manats at the beginning of the year to 32.1 million manats at the beginning of December. At the same time, the share of non-performing loans in the total portfolio increased only slightly.

The expert emphasizes the need to strengthen measures to reduce risks in the banking sector in order to prevent further growth of non-performing loans and protect financial stability.

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