‘Young people make up about 80 per cent of borrowers in Azerbaijan. The vast majority of the borrowers are under 40, most are normally not older than 30,’ says Akram Hasanov, a well-known lawyer and bank expert.
He believes that debt culture came to Azerbaijan from the West, which the older generation is more cautious about borrowing.
“I think that although this tendency is dangerous, it will change in the near future. Young people are becoming disappointed. They realize that a debt is sometimes very difficult to pay back. There will now be fewer young people seeking loans,” Hasanov explained.
The total amount of overdue loans in Azerbaijan stood at just over 1.8 billion AZN ($1 billion) as of July 1, 2017. The amount of problem loans in monthly comparison increased by 70.9 million AZN ($41.7 million), or 4.1 per cent, compared to the beginning of the year it increased by 338.1 million AZN ($199 million), or 23 per cent, and in annual terms it increased by $270.9 million, or 17.6 per cent.
As of the end of June, the amount of problem loans in the total loan portfolio reached 13 per cent.