BAKU, Azerbaijan, July 17. The volume of credit
investments in the Karabakh Economic Region stood at 556.865
million manat ($327.5 million) as of June 1 of this year.


This was reported in a statistical report by the Central Bank of
Azerbaijan.


According to the report, this figure increased by 75.3 million
manat ($44.2 million), or 12.3%, compared to the same period last
year.


The report indicates that over the reporting period, the average
interest rate on loans in the region was 19.92%.


Of the total loan portfolio, 556.547 million manat ($327.3
million) were denominated in the national currency, and 318,000
manat ($187,053) were denominated in freely convertible currency
(FCC).


At the same time, as of June 1 of this year, the volume of loans
in the East Zangezur Economic Region increased by 21.7 million
manat ($12.7 million), or 2.9 times compared to the same period
last year, reaching 32.755 million manat ($19.2 million).


During the reporting period, the average interest rate on loans
in this region was 13.52%.


Throughout the specified period, of the total volume of loans in
the region, 24.383 million manat ($14.3 million) were issued in the
national currency, and 8.373 million manat ($4.9 million) were
issued in freely convertible currency (FC).


Thus, the total volume of loans in the Karabakh and East
Zangezur economic regions reached 589.620 million manat ($346.8
million), which is 82.6 million manat ($48.5 million), or 16.3%,
higher than the same period last year.







Meanwhile, as of June 1, 2026, the total volume of loans across
all regions of Azerbaijan stood at 30.886 billion manat ($18.1
billion). Compared to the same date in 2025, this figure increased
by 2.5 billion manat ($1.4 billion), or 8.8%.


The growth in credit investments is taking place against the
backdrop of an ongoing large-scale reconstruction process and
economic recovery in the liberated territories. In recent years,
large-scale projects have been implemented in Karabakh and Eastern
Zangezur through government investment to develop transportation,
energy, and utility infrastructure, as well as industry, and to
rebuild settlements, which is contributing to increased business
activity and higher demand for financing.


Economy Minister Mikayil Jabbarov, speaking at the event
''Azerbaijan Investment Forum 2026: Investment Prospects'',
organized within the framework of the Annual Meeting of the Islamic
Development Bank Group in Baku, said that the restoration of
liberated territories, the return of internally displaced persons
to their native lands, and their socio-economic reintegration are
one of the key national priorities of Azerbaijan.


According to the minister, a broad package of tax incentives is
available to investors in the liberated territories, modern
infrastructure is being developed, and, thanks to government
support, the investment climate is becoming even more
attractive.


''There are currently two major industrial parks operating in
these territories. The concessions implemented in the liberated
territories and the modern infrastructure that has been built serve
to attract private investment and boost economic activity,''
Mikayil Jabbarov said.


He added that Azerbaijan’s investment strategy is based on three
main areas: transportation, green energy, and digital
transformation. In this regard, the regions of Karabakh and East
Zangezur are becoming new centers of economic development against
the backdrop of projects related to the ''Middle Corridor'' and the
future ''Zangezur Corridor.''


Speaking to Trend
about the scale of projects being implemented in this area, Anar
Guliyev, national coordinator of the World Urban Forum (WUF13) and
chairman of the State Committee on Urban Planning and Architecture,
stated that over the past five years, approximately $14.7 billion
has been invested in infrastructure and housing projects in
Karabakh and East Zangezur, and by 2028, this amount is expected to
reach $18 billion.


''These projects incorporate smart infrastructure, renewable
energy, sustainable land use, and digital management systems.
According to new spatial planning documents, more than half of the
region’s territory has been designated as a green zone,'' Anar
Guliyev told Trend.