BAKU, Azerbaijan, November 5. Banks and
non-bank credit institutions (NBCIs) in Azerbaijan had a combined
35.7 billion manat ($21 billion) in loans outstanding to the real
sector as of October 1 this year.
According to calculations by Trend based on data from the Central Bank of
Azerbaijan (CBA), this represents an increase of 4.7 billion manat
($2.76 billion), or 15.1%, compared with the same period last year.
Loans to the real sector totaled 31 billion manat ($18.24 billion)
as of October 1, 2025.
The reporting period also saw an increase in overdue loans.
Their total volume reached 754 million manat ($443.5 million), up
226 million manat ($132.9 million), or 42.8%, year on year. For
comparison, overdue loans stood at 528 million manat ($310.6
million) as of October 1, 2025. Their share of the overall loan
portfolio rose from 1.7% to 2.1%.
A breakdown of lending by economic sector shows that households
accounted for the largest share of the overall loan portfolio.
Loans to households totalled 21.1 billion manat ($12.41 billion)
during the reporting period, an increase of 2.6 billion manat
($1.53 billion), or 14.3%, compared with the same period last year.
The figure stood at 18.5 billion manat ($10.88 billion) as of
October 1, 2025.
Among other sectors, trade and services ranked second in terms
of lending volume. Outstanding loans to this sector reached 4.6
billion manat ($2.71 billion), up 344 million manat ($202.4
million), or 8%, year on year. The corresponding figure for the
same period last year was 4.3 billion manat ($2.53 billion).
Construction was another sector to record substantial growth in
lending. Outstanding loans to the sector amounted to 2.8 billion
manat ($1.65 billion) as of October 1, up 1 billion manat ($588.2
million), or 56.3%, compared with the same period last year. This
made construction one of the sectors with the highest annual growth
rates.
Loans to the transport and communications sector also increased,
reaching 2.8 billion manat ($1.65 billion). This compares with 2.1
billion manat ($1.24 billion) in the corresponding period of 2025,
representing an increase of 745 million manat ($438.2 million), or
35.6%.
Total lending to the industrial and manufacturing sector stood
at 1.7 billion manat ($1 billion). The figure was also
approximately 1.7 billion manat ($1 billion) in the same period
last year. The annual increase amounted to just 2.5 million manat
($1.47 million), or 0.1%, indicating that lending to the sector
remained virtually unchanged.
Meanwhile, lending declined in mining, electricity, gas, steam
and water supply. Loans to these sectors totalled 552 million manat
($324.7 million) during the reporting period, down 158 million
manat ($92.9 million), or 22.3%, from 710 million manat ($417.6
million) in the same period last year.
Agriculture, forestry and fishing also recorded a decline in
lending. Loans to the sector amounted to 505 million manat ($297.1
million), compared with 563 million manat ($331.2 million) a year
earlier, representing a decrease of 58 million manat ($34.1
million), or 10.4%.
Overall, households, trade and services, construction, and
transport account for the largest shares of lending across economic
sectors. The increase in both the volume of overdue loans and their
share of the overall loan portfolio was another notable development
during the reporting period.
