The downward trend in loan dollarization in Azerbaijan continued for 9 months of 2024. Loans in manat increased by 21.2%, while loans in foreign currency increased by 6.3%. The share of loans in foreign currency decreased by 2 percentage points, amounting to 16.6% at the end of September.
Day.Az reports this with reference to the Central Bank of Azerbaijan (CBA).
The weighted average interest on newly issued loans in manats amounted to 16%, while on loans in foreign currency – 6%.
The loan portfolio as a whole increased by 18.5%, reaching 28.4 billion manat. The share of long-term loans in the portfolio increased from 82.9% to 83.9%, and the volume of long-term loans amounted to 23.8 billion manat. In turn, the share of short-term loans decreased from 17.1% to 16.1%, the volume of short-term loans amounted to 4.6 billion manats.
Excluding overdue loans, lending activity remained high: loans in trade and services increased by 14.1%, in industry and production – by 80.1%, and in construction – by 6.3%. Business loans, which make up the bulk of banks’ portfolios, grew by 14% compared to the end of 2023, reaching 14.4 billion manats.