“The banking sector of Azerbaijan continues its recovery process after a long correction,” it was stated in the forecast of the international rating agency S&P Global Ratings, APA-Economics reports.
“After several years of stagnancy, credit activity in the banking sector has revived since 2020. We expect that the gradual easing of the interest rate should support loaning growth during 2024-2025. We believe that amid the backdrop of an increase in the loan portfolio, nonperforming loans (NPL) may increase to around 4.0% over the next two years, compared to the 2.6% officially reported by the Central Bank of Azerbaijan at the end of 2023,” S&P added.
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