BAKU, Azerbaijan, Feb. 25. Asset quality of
Azerbaijani banks will remain good in the next 12-18 months, Trend
reports via Moody’s.
The rating agency notes that loan performance will benefit from
favourable economic conditions, with borrowers' debt-repayment
capacity strengthening thanks to robust performance in non-oil
sectors and rising total income levels in Azerbaijan.
“Problem loans for the banking sector were 2.5% of gross loans
as of December 2025 (2.4% in 2024 and 2.6% in 2023), while reserve
coverage of problem loans was strong at above 220%. Loan
performance will benefit from the tight regulatory framework for
consumer lending, while the stable local currency (manat) will be
positive for performance of foreign-currency loans (14.2% of total
loans as of December 2025),” the report reads.
Will be updated
