As a result of regulatory concessions implemented by the Central Bank of Azerbaijan (CBA), over the past 18 months since 2022, lending of electric and hybrid passenger cars by banks has increased 8 times in number and 6.5 times in amount.
Oku.Az reports that the Central Bank of Azerbaijan has published information on this matter.
It was reported that at the end of 2022, the proportion of electric and hybrid cars in banks’ loan portfolio was 17.8% in the total passenger car portfolio, but at the end of June this year it was 59.9%.
The CBA contributes to increasing financial accessibility in this direction by actively participating in the discussions held as the main executive body within the framework of the “Preparation of proposals to increase financial accessibility for the acquisition of environmentally friendly and safe vehicles”. This measure is reflected in the “Roadmap for 2024 on stimulating the circulation of environmentally friendly and safe vehicles and improving infrastructure” of the Business Environment and International Ratings Commission.
The CBA has already put forward proposals to increase the financial availability for the purchase of safe and environmentally friendly vehicles in 2022, and has taken important steps in this direction. Thus, the institution made changes to the rules and relaxed the loan conditions for the purchase of ecologically clean and safe vehicles. All of this has had a positive impact on credit and insurance for this type of vehicle. These implemented initiatives have increased the level of accessibility in the purchase of the aforementioned vehicles on credit.
The “Subgroup for stimulating the circulation of environmentally friendly and safe vehicles and improving infrastructure” is managed by the Azerbaijan Land Transport Agency under the Ministry of Digital Development and Transport.
