BAKU, August 1, 2025
Azerbaijan’s Central Bank has introduced tighter regulations on consumer credit cards, aiming to curb excessive borrowing and strengthen financial discipline among consumers.
According to the new rules, a borrower’s total credit limit—across all banking and financial institutions—may not exceed five times their net monthly income. The changes apply to both new credit applications and existing lines of credit.
In addition, the Central Bank set the credit conversion coefficient for the off-balance portion of consumer credit cards at 40%. This means that 40% of the unused limit on a credit card will now be factored into a borrower’s debt burden ratio when assessing new loan applications.
Officials say the updated regulation is part of broader efforts to ensure sustainable consumer lending practices and reduce credit risks in the banking sector.
