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Credit investments in Azerbaijan's electricity, gas, steam and water supply sectors declined by 3.1% in September 2026, reaching AZN 264.4 million ($155.5 million), according to the latest statistical bulletin published by the Central Bank of Azerbaijan (CBA).

The figure represents a decrease of AZN 8.5 million ($5 million) compared with the AZN 272.9 million ($160.5 million) recorded at the end of August.

The decline was primarily driven by reduced lending to state-owned enterprises, while private-sector borrowing increased during the reporting period.

According to the CBA data, outstanding loans to state-owned enterprises in the sector fell by AZN 9.7 million ($5.7 million), or 4.2%, from AZN 232.2 million ($136.6 million) in August to AZN 222.5 million ($130.9 million) at the end of September.

By contrast, lending to private enterprises rose by AZN 1.1 million ($647,000), or 2.7%, reaching AZN 41.9 million ($24.6 million), compared with AZN 40.8 million ($24 million) a month earlier.

State-owned enterprises continued to account for the overwhelming majority of credit investments, representing approximately 84.2% of the sector's total loan portfolio, while private enterprises accounted for 15.8%.

Short-term lending declines by 5.2%

Short-term loans in the electricity, gas, steam and water supply sectors amounted to AZN 27.1 million ($15.9 million) at the end of September, down from AZN 28.6 million ($16.8 million) in August.

The monthly decline of AZN 1.5 million ($882,000) represented a reduction of 5.2%.

Of the total short-term loan portfolio, AZN 11.7 million ($6.9 million) was allocated to state-owned enterprises, while AZN 15.4 million ($9.1 million) went to private companies.

Short-term lending to state-owned enterprises decreased by 18.8%, falling from AZN 14.4 million ($8.5 million) to AZN 11.7 million ($6.9 million).

Meanwhile, private-sector short-term borrowing increased by 8.5%, rising from AZN 14.2 million ($8.4 million) to AZN 15.4 million ($9.1 million).

In terms of currency composition, AZN 22.7 million ($13.4 million) of short-term loans were denominated in the national currency, while AZN 4.4 million ($2.6 million) were denominated in foreign currencies.

Compared with August, manat-denominated short-term loans declined by AZN 1.2 million ($706,000), or 5%, from AZN 23.9 million ($14.1 million). Foreign-currency loans decreased by AZN 300,000 ($176,500), or 6.4%, from AZN 4.7 million ($2.8 million) to AZN 4.4 million ($2.6 million).

Long-term loans account for nearly 90% of sector financing

Long-term loans remained the dominant component of credit investments in the utilities sector, reaching AZN 237.3 million ($139.6 million) at the end of September.

This represented a decrease of AZN 7.1 million ($4.2 million), or 2.9%, compared with AZN 244.4 million ($143.8 million) recorded at the end of August.

Long-term financing accounted for approximately 89.8% of the sector's total credit portfolio.

Of these loans, AZN 210.9 million ($124.1 million) was allocated to state-owned enterprises, while private companies received approximately AZN 26.5 million ($15.6 million).

Long-term lending to state-owned enterprises declined from AZN 217.8 million ($128.1 million) in August to AZN 210.9 million ($124.1 million) in September, while the private-sector figure remained unchanged at AZN 26.5 million ($15.6 million).

Foreign-currency lending continued to dominate the long-term portfolio.

According to the CBA, AZN 215 million ($126.5 million) of long-term loans were denominated in foreign currencies, compared with AZN 22.3 million ($13.1 million) in manat-denominated loans.

Of the foreign-currency loans, AZN 210.8 million ($124 million) was allocated to state-owned enterprises and AZN 4.3 million ($2.5 million) to private companies.

Meanwhile, private enterprises accounted for AZN 22.2 million ($13.1 million) of manat-denominated long-term lending, compared with just AZN 100,000 ($58,800) allocated to state-owned enterprises.

Compared with August, the volume of foreign-currency long-term loans declined from AZN 221.9 million ($130.5 million) to AZN 215 million ($126.5 million), while manat-denominated loans edged down from AZN 22.4 million ($13.2 million) to AZN 22.3 million ($13.1 million).