The goal is not to reduce household borrowing but to ensure that its growth is built on sound and sustainable foundations, said Shahin Mahmudzade, Director General of the Central Bank of Azerbaijan, during a press conference on the Financial Stability Report, Trend reports.
He noted that the key principle is for individuals to take on debt only within their repayment capacity.
“The increase in borrowing is partly linked to a low initial base. Additionally, international experience shows that borrowing tends to rise as incomes grow. In this context, the overall increase in borrowing can be considered normal; the main issue is to prevent the growth of risky and vulnerable loans,” he said.
