Average debt on consumer loans has increased in Azerbaijan

11:49 - 18.10.2022

October 18, Fineko/abc.az. The Central Bank of Azerbaijan reports an increase in the average debt per borrower on consumer loans.

ABC.AZ informs with reference to CBA’s report on financial stability for the 1st half of 2022.

The report says that at the end of 2022 the average debt is 5,680 manats, at the end of 2021 - 5,452 manats, whereas in 2020 this figure was 4,834 manats, in 2019 – 4,520 manats.

At that, the regulator emphasizes that the CBA has taken the necessary measures to prevent the future growth of credit indebtedness of socially sensitive segments of the population.

The calculation was made on debtors whose residual debt was in the range from 500 to 150,000 manats.

The share of non-performing loans on mortgage loans is 2% (decrease of 0.7 percentage points for Jan-Jun 2022).

The report stresses that in accordance with the latest changes made to the regulatory framework, the upper limit on the debt-to-income ratio (BGN) was set at 70%.

In particular, the debt burden of the population with vulnerable social status is expected to decrease in the future.