Baku, September 29, 2025
The Central Bank of Azerbaijan has introduced new restrictions on consumer credit limits, aiming to reduce financial risks, strengthen banking stability, and protect citizens from excessive debt.
The updated regulations not only cap loan amounts provided by commercial banks and credit organizations but also require more thorough assessments of borrowers’ repayment capacity.
Experts note that while the tighter rules may create short-term challenges for citizens seeking loans, in the long run they are expected to reinforce the resilience of the banking system and safeguard consumer interests.
Vugar Bayramov, a member of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship, welcomed the Central Bank’s move. He stressed that consumer loans must always be linked to income levels, and the new framework ensures that banks evaluate borrowers more objectively.
“If a citizen opens a credit line of 10,000 manats but cannot repay it on time, the debt accumulates not only high interest but also daily penalties,” Bayramov told BAKU.WS.
“The new restrictions will ensure that credit lines are opened in line with people’s incomes, lowering the risks of unsustainable debt and protecting citizens from hefty fines.”
Bayramov added that the reforms benefit both banks and clients, fostering more responsible lending practices and reducing the likelihood of households facing crushing debt burdens.
