BAKU, Azerbaijan - Credit investment in Azerbaijan’s economy reached 34.884 billion manats ($20.52 billion) as of Sept. 1, 2026, an increase of 14.5% from a year earlier, according to Central Bank data.
The total was 2.1% higher than on Aug. 1 and 9.2% above the level at the start of the year, according to figures reported by Report.
Private banks accounted for 24.2368 billion manats, or 69.5% of total lending, after their portfolios grew 13.9% year over year. State-owned banks held 8.5874 billion manats in loans, up 15.7%, while non-bank credit institutions held 2.0598 billion manats, up 17.1%.
Where the Credit Goes Matters
Economics professor Zahid Mammadov told Demokrat.az that expanding lending reflects stronger demand for financing from businesses. Companies are borrowing to replenish working capital, carry out investment projects and expand production, he said.
Government credit guarantees and interest subsidies have also supported lending activity, Mammadov said. He described the growth as a positive sign for financial-sector and broader economic activity.
But a larger credit portfolio does not by itself guarantee sustainable economic growth. The longer-term effect depends on whether financing reaches businesses that produce goods and create jobs or is concentrated mainly in consumer lending.
Loans for equipment, manufacturing, agriculture, technology and exports can expand capacity and productivity. Consumer credit can support trade and services in the near term, but it does less to build future production.
Mammadov also warned that debt burdens and the risk of missed payments can rise if borrowing grows faster than household and business income. Rapid credit growth may also push up the prices of some assets without a corresponding improvement in underlying economic value.
He said policymakers should focus on the quality and economic return of lending, including its distribution across sectors, borrowing costs, the balance between investment and consumer loans, and borrowers’ ability to repay.
The headline data do not provide a sector-by-sector breakdown, so they do not show which industries received most of the additional financing.
Source: Vesti Baku.