16:49 - 21.05.2025

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May 21, Fineko/abc.az. According to the survey results for Q1 of 2025, although there have been no changes in credit standards for microenterprises and large business entities, there has been softening of credit conditions for small and medium-sized enterprises (SMEs).

ABC.AZ informs, citing the Central Bank, that banks believe that there will be no changes in standards for general business loans, including loans to SMEs, in the next quarter, but conditions for microenterprises are expected to ease.

The banks noted that the changes in business loan standards mainly relate to increased margins on high-risk loans, stricter covenants and higher cost of loans.

According to the responses of the banks participating in the survey, the demand for business loans did not change in the first quarter of 2025. According to information received from banks, there was no significant change in demand for business loans due to the large number of non-working days in the first quarter of this year.

Banks expect an increase in demand for general business loans, including loans to small, medium and micro enterprises, in the next quarter. Although the survey assessed general economic expectations and the cost of financing as factors having a tightening effect on standards, the standards themselves were not tightened.

"In general, the survey results show that the growth in the banks' business portfolio will continue in the next quarter," the report says.