CBA: Terms of business loans eased

Terms of business loans have been eased in Azerbaijan, the Central Bank of Azerbaijan (CBA) said in response to Report's inquiry.

“Given the risks involved in business loans, they are subject to more lenient prudential norms than other types of loans (for example, consumer loans) in order to stimulate the role of banks in financing the real sector.

For example, the risk rate of business loans in national currency granted to small and medium enterprises, as well as aimed at financing exports in the non-oil sector, was reduced from 100% to 50%; the risk rate for business loans in foreign currency aimed at financing exports in the non-oil sector is set at 75%, etc.

Also, in order to increase the role of banks in the financing of large-scale and long-term projects in the real sector, as well as to adapt the regulatory framework to advanced international practice, on October 24, 2022, the CBA approved the Rule on the prudential regulation of project financing loans,” said the bank.