BAKU, Azerbaijan, October 7. The main goal of the Central Bank of Azerbaijan (CBA) is to prevent excessive borrowing, the CBA Executive Director Shahin Mahmudzade said at a press conference on financial stability, Trend reports.
"We are not against borrowing, but borrowing should be in a healthy form. That is, a person with an income of five manat should not be given a loan of six manat," the official emphasized.
He pointed out that the measures taken by the CBA in this direction are more aimed at preventing excessive borrowing.
"More stringent measures can be taken in this regard. The population revenues have increased, and in relation to this, borrowing has also increased. However, it's at a lower level than in the countries of the region," the official added.
To note, the ratio of the population's debt burden to disposable income increased by 0.5 percentage points compared to the end of last year, reaching 18.5 percent. According to the results of a survey conducted among banks on lending activity and sources of financing, based on market share, 49 percent of banks reported no change in population borrowing, while 50 percent reported a moderate increase.
Stay up-to-date with more news on Trend News Agency's WhatsApp channel