BAKU, Azerbaijan, August 12. Interest rates on
manat-denominated loans in Azerbaijan have stabilized over the past
year, while rates on foreign currency loans have declined,
according to the Central Bank of Azerbaijan (CBA).
The CBA said lending to the economy continued to grow in
January-June 2026.
“The loan portfolio of banks and non-bank credit organizations
(NBCOs) increased by 6.1% from the beginning of the year to 33.9
billion manats ($19.94 billion) in June. Long-term loans continued
to account for the largest share of the portfolio, reaching 82.5%
at the end of the period.
“The volume of long-term loans increased by 6.8% during the
period to 27.9 billion manats ($16.41 billion), while short-term
loans rose 2.6% from the beginning of the year to 5.9 billion
manats ($3.47 billion).
“Business lending increased by 6.7% during the reporting period
to 17.2 billion manats ($10.12 billion) at the end of June. The
largest increase in business lending was recorded in the
transportation sector, at 36%.
“Consumer and mortgage loans increased by 6% and 2.7%,
respectively, during the period, reaching 9.9 billion manats ($5.82
billion) and 4.7 billion manats ($2.76 billion). At the end of the
reporting period, foreign currency-denominated loans accounted for
14.9% of total lending,” the CBA said.
The average weighted interest rate on new manat-denominated
loans stood at 18.6% in June 2026, while the average weighted rate
on new foreign currency loans was 5.4%, the central bank said.
