BAKU, Azerbaijan, May 29. The volume of non-performing loans (NPLs) held by banks operating in Azerbaijan amounted to 734.1 million manat ($433.1 million) at the end of April of the current year.
The data obtained by Trend from the Central Bank of Azerbaijan shows that
the current metric stands at 24.2 million manat ($14.3 million),
reflecting a 3.4 percent uptick relative to the conclusion of the
preceding month.
As of the conclusion of March in the current fiscal year, the
aggregate quantum of non-performing loans retained by financial
institutions in Azerbaijan was quantified at 709.9 million manat,
equivalent to approximately $419.8 million.
In the specified reporting timeframe, a total of 393 million manat
(equivalent to $232 million) was attributed to non-performing
business loans, while consumer loans accounted for 306.4 million
manat (approximately $180.8 million), and mortgage loans
represented 34.7 million manat (around $20.5 million).
The proportion of non-performing loans constituted 2.6 percent of
the aggregate loan portfolio within the banking sector.
It is imperative to acknowledge that a non-performing loan (NPL)
constitutes a financial instrument wherein the obligor has
defaulted on either the principal or interest payments, wholly or
partially, within a designated timeframe. Financial entities and
banking institutions generally categorize these types of loans as
delinquent when they remain in a non-performing status for over 90
days (or occasionally an extended timeframe).
