12:49 - 12.11.2025

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November 12, Fineko/abc.az. Between 2020 and 2024, the average share of SME loans in total bank lending decreased in 12 countries, and increased in eight countries.

ABC.AZ informs that Shigehiro Shinozaki, senior economist at the Asian Development Bank (ADB), made the above-said statement during the presentation of the ADB report "Monitoring of Small and Medium-sized Enterprises in Asia 2025" in Baku.

"For instance, in the Caucasus and Central Asia, overall climate crises were likely linked to economic adaptation driven by growth and state support. Broadly, two trends can be identified. In some countries, like Azerbaijan and Armenia, the share of SME loans gradually declined, coinciding with expanded lending to large companies. In others, such as Uzbekistan, the share of SME loans increased due to enhanced government support through the newly established Business Development Bank," he added.

He also noted that the share of non-performing SME loans fell after the pandemic up to 2023 but began to rise again in 2024 as SME banking markets expanded across the region.

"Thus, the ratio of non-performing SME loans to total SME lending declined after peaking at 8.7% during the pandemic in 2020, stabilizing at 7.0% in 2023. However, in 2024 it rose again to 7.6%. Overall, the share of non-performing SME loans continued to decrease in the Caucasus and Central Asia but increased in South Asia, as well as in Southeast Asia and the Pacific. Regional trends therefore differ significantly," Shinozaki emphasized.