BAKU, Azerbaijan, February 26. The volume of non-performing loans (NPLs) in Azerbaijani banks amounted to 690.6 million manat ($406 million) by the end of January 2025.
The data obtained by Trend from the country's Central Bank (CBA) shows that this figure rose by 45.2 million manat ($26.6 million) or seven percent compared to the end of last January 2024 (645.4 million manat) $379.6 million)).
In the reporting period, 389.4 million manat ($229 million) of the banks' NPLs accounted for business loans, 267.2 million manat ($157 million) - consumer loans, and 34 million manat ($20 million) - mortgage loans.
The banks' non-performing loans make up 2.5 percent of the total loan portfolio.
The banks' loan portfolio amounted to 27.5 billion manat ($16 billion) in the reporting month. Meanwhile, 14.7 billion manat ($8.6 billion) of the loan portfolio fell on business loans, 8.5 billion manat ($5 billion) on consumer loans, and 4.2 billion manat ($2.47 billion) on mortgages.
NPL is a loan for which the borrower fails to repay all or part of the principal or interest payments within a specified period. Banks and financial institutions usually classify such loans as outstanding for more than 90 days (sometimes longer).